On January 1, 2021, ABC Co. acquired all of the identifiable assets and assumed all of the

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On January 1, 2021, ABC Co. acquired all of the identifiable assets and assumed all of the liabilities of XYZ, Inc. by paying cash of ₱4,000,000. On this date, the identifiable assets acquired and liabilities assumed have fair values of ₱6,400,000 and ₱3,600,000, respectively.The terms of the business combination agreement are shown below: A. Half of the ₱4,000,000 agreed consideration shall be paid on January 1,2021 and the other half on December 31, 2025. The prevailing market rate as of January 1, 2021 is 10%. B. In addition, ABC agrees to provide for the following: a. A piece of land with a carrying amount of ₱2,000,000 and fair value of ₱1,200,000 shall be transferred to the former owners of XYZ. b. After the combination, XYZ's activities shall be continued by ABC. ABC agrees to provide a patented technology for use in the activities of XYZ.

The patented technology has a carrying amount of ₱240,000 in the books of ABC and a fair value of ₱320,000. Included in the liabilities assumed is an estimated liability on a pending lawsuit filed against XYZ by a third party with an acquisition-date fair value of ₱400,000. The carrying amount of the liability in XYZ's books immediately before the business combination is ₱480,000. XYZ guarantees to indemnify ABC for any settlement amount of the liability in excess of ₱480,000.

Determine the following:
a. Fair value of the consideration given
b. Fair value of Net Assets acquired
c. Goodwill (gain on bargain purchase)