Question: On July 1, Fel Co. paid P7,200,000 for all issued and outstanding common stock of Rod Corp. The recorded assets and liabilities of Rod Corp.

On July 1, Fel Co. paid P7,200,000 for all issued and outstanding common stock of Rod Corp. The recorded assets and liabilities of Rod Corp. as of July 1, are as follows: Cash 120,000 Inventory 2,500,000 Property, plant & equipment (net) 5,400,000 Goodwill 600,000 Liabilities (1,800,000) Net assets 6,820,000 On July 1, Rod Corp. inventory fair value is 2,300,000 and the property, plant & equipment(net) had a fair value is 5,750,000. What is the amount of goodwill resulting from the business combination? a. 830,000 b. 230,000 c. 0 d. 600,000

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