Bush Co. paid P1,400,000 for net assets of VV Company.

It was determined that fair market values of

inventories and plant, property, and equipment were P133,000 and P900,000, respectively
An assumed contingent liability arising from past event with a fair value amounting to P10,000 and such
amount is considered as a reliable measurement.
In the Books of Bush Co. This transactions resulted in
9. KK Inc. was merged into LL Inc. in a combination properly accounted for as acquisition of interests.
Their condensed balance sheets before combinations show

LL KK
Current Assets       P2,288,000                           P1,627,600
Plant and equipment, net       P 4,654,000                          P 1,040,000
Patents                                                                                                                              P 260,000
Total Assets     P6,942,000                           P2,927,600
Liabilities                                                                           P2,704,000         P 171,600
Capital Stock, par 100                                                     P2,600,000                           P 1,300,000
Additional Paid in capital                                               P390,000                               P  390,000
Retained Earning                                                             P 1,248,000                           P  1,066,000
Per independent appraiser’s report. KK’s assets have fair market values of P1,653,600 for current assets,
P 1,248,000 for plant and equipment and P338,000 for patents. KK’s liabilities are properly valued. LL
purchases KK’s net assets for P3,068,000. 
How should the difference between the book value of KK’s net assets and the consideration paid