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Sicat Company was acquired by Pineda Corp. on July 1, 2014. Pineda exchanged 30,000 shares of P5 par value, with a market value of P20 per share plus effective P200,000, for the net assets of Sicat Company and Sicat Company is dissolved. In addition, Pineda Corp. has agreed to pay P200,000 in cash to former Sicat Company shareholders if the post-combination earnings target is likely to be achieved. Pineda estimates that there is a 50% chance that the payment of P200,000 will be required. 

The acquirer incurred the following costs as a result of this transaction:

Direct acquisition cost	25.000 pesos
Indirect acquisition cost	30,000
Cost of Registration and Issuance of Shares	10,000

Sicat's Statement of Financial Position together with the fair values on the day of the acquisition was as follows:

	Value in books	fair value
Money	100.000 pesos	100,000
Inventory	300.000	250.000
Property, plant and equipment
Tierra	200,000	250.000
Building (Net)	250.000	230.000
Team (Net)	200,000	220,000
Goodwill	75,000
Total	1.125.000 pesos
current liabilities	80.000 pesos	80.000 pesos
Long term passives	150.000	140.000
Obligations with the public	400.000	370.000
Equity:
Common actions	200,000
Capital paid in excess of par	150.000
Retained earnings	145.000
Total	1.125.000 pesos

Based on the above date, calculate  the following:

Question 1. The cost of the combination.

Question 2. The Goodwill/(Gain) resulting from the business combination. 

Question 3. Net increase/decrease in total assets of acquirer after combination.

Question 4. Increase in SHE of the acquirer after the business combination.

Question 5. Assuming that the profit contingency is met, how much would be credited in cash to settle the contingency on July 1, 2016?

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