Corporations on January 1, 2017, just before they entered into a business combination: 13 The following Statement of Financial Position were prepared for Red and Blue So Problem 13-6 Blue Corporation Fair Value P 50,000 245,000 250,000 Items Cash and Receivables Inventory Buildings and Equipment Less: Accumulated Depreciation Total Assets Red Corporation Book Value Fair value Book Value P 300,000 P 300,000 P 50,000 400,000 600,000 100,000 800,000 870,000 300,000 ( 200,000) ( 150,000) P1,300,000 P1,770,000 P300,000 P545,000 P 100,000 400,000 P 100,000 440,000 P 40,000 60,000 P 40,000 85,000 300,000 Accounts Payable Bonds Payable Common Stock: P10 par value Ps par value Additional Paid-in Capital Retained Earnings Total Liabilities and Equities 100,000 400,000 P1,300,000 100,000 20,000 80,000 P300,000 Required: Assume that Red Corporation acquires the net assets of Blue Corporation by issuing 15,000 shares of stock. Prepare a Statement of Financial Position for the combined company immediately after the acquisition if the market price of Red Corporation shares is (1) P40 and (2) P20 at the time the acquisition occurs