On January BB Acquired 60 percent of the outstanding voting stock of SS for P260,000 cash consideration. The remaining 40 percent of SS had an acquisition date fair value of P65,000. On January SS possessed equipment (5-year life) that was undervalued on its books P25,000. SS also had developed several secret formulas that BB assessed at P50,000. These formulas, although not recorded on SS's financial records, were estimated to have 20-year future life. BB also determined that the inventory of SS is overvalued by P10,000; 80% of these inventories remain unsold by the end of the year. As of December 31, the financial statements appeared as follows:
Revenues (from sales and dividends) (300,000) (200,000)
Cost of goods sold 140,000 80,000
Expenses 20,000 10,000
Net Income (140,000) (110,000)
Retained earnings 1/1 (300,000) (150,000)
Net Income (140,000) (110,000)
Dividends paid 10,000
Retained earnings 12/31 (440,000) (250,000)
Cash and Receivables P 210,000 P 90,000
Inventory 150,000 110,000
Investment 260,000
Equipment (net) 440,000 300,000
Total Assets 1,060,000 500,000
Liabilities (420,000) (150,000)
Common stock (200,000) (100,000)
Retained earnings 12/31 (440,000) (250,000)
Total Liabilities and Equities (1,060,000) (500,000)
Determine the consolidated assets as of December 31.