Problem
On June 30, 202I Smile Corporation issued 100,000 shares of its P20 par value common stock for the net assets of Sad Company. The market value of Smile's common stock on June 30 was P36 per share. Smile paid a fee of Pl00,000 to the broker who arranged this acquisition. Costs of SEC registration and issuance of the equity securites amounted to,150,000. Contingent consideration determined to be paid after acquisition amounts to P120,000. What amount should Smile capitalize as the cost of acquiring Sad's net assets.