Please answer and provide clear solution. Thank you for your help.

Problem No. 1

Companies AA and BB decided to combine to form CC. Net assets and estimated earnings contributions are as follows:

	Net Assets	Est. Annual Earnings
Company AA	400,000	80,000
Company BB	300,000	50,000

Stockholders of the two companies agree that a single class of stock be issued and total stock to be issued be measured by their net assets only. The normal rate of return is 8% and earnings in excess of the normal rate of return shall be capitalized at 20%. It was also agreed that the authorized capital stock of CC shall be 20,000 shares with par value of P125 a share.

What is the number of shares to be issued to Co. AA ?

What is the number of shares to be issued to Co. BB ?

Problem No. 2

The condensed statement of financial position accounts of Tiger Inc. and Selina Inc. as of December 31, 2018 show:

	Tiger Inc.	Selina Inc.
Assets	3,125,000	875,000
Liabilities	1,625,000	250,000
Ordinary share capital (par P100)	1,250,000	500,000
Retained earnings	250,000	125,000

On January 1, 2019, Tiger acquired 4,500 shares of Selina at P140 per share.

In the consolidated statement of financial position prepared after acquisition, what is the combined assets (assuming the non-controlling interest is measured at its proportionate share of the identifiable net assets)?