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AA Inc. was merged into BB Inc. in a combination properly accounted for as acquisition...

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Accounting

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AA Inc. was merged into BB Inc. in a combination properly accounted for as acquisition of interests. BB 2,288,000.00 4,654,000.00 Current Assets Plant and Equipment Patent Liabilities Capital Stock Share Premium Retained Earnings AA 1,627,600.00 1,040,000.00 260,000.00 171,600.00 1,300,000.00 390,000.00 1,066,000.00 2,704,000.00 2,600,000.00 390,000.00 1,248,000.00 Per independent appraiser's report. AA's assets have fair market values of P1,653,600 for current assets, P1,248,000 for plant and equipment and P338,000 for patents. AA's liabilities are properly valued. BB purchases AA's net assets for P3,068,000. How should the difference between the book value AA's assets and the consideration paid by BB be considered? O Goodwill: Po; Increase in Assets: P234,000 O Goodwill: P338,000; Increase in Assets: P234,000 Goodwill: Po; Increase in Assets: P312,000 O Goodwill: P338,000 ; Increase in Assets: P 78,000

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