On December 31, Year 1, P Company purchased 80% of the outstanding shares of S Company for $7,900 cash The statements of financial position of the two companies immediately after the acquisition transaction appear below. P Company Carrying Amount S Company Carrying Fair Amount Value 8,300 $ 7,000 Plant and equipment (net) 9,600 Investment in S Company Inventory Accounts receivable 7,900 6,660 6,150 4,5002,5502,550 5,3005,500 3,3003,300 $34,81019,450 Ordinary shares Retained earnings Long-term liabilities Other current liabilities Accounts payable $ 12,0004,500 15,410 4,500 1,500 1,400 $34,810 5,950 3,5003,500 3,3003,300 2,2002,200 19,450 Requlred b) Prepare a consolidated statement of financial position at the date of acquisition under each of the following: i) Parent company extension theory i) Entity theory. On December 31, Year 1, P Company purchased 80% of the outstanding shares of S Company for $7,900 cash The statements of financial position of the two companies immediately after the acquisition transaction appear below. P Company Carrying Amount S Company Carrying Fair Amount Value 8,300 $ 7,000 Plant and equipment (net) 9,600 Investment in S Company Inventory Accounts receivable 7,900 6,660 6,150 4,5002,5502,550 5,3005,500 3,3003,300 $34,81019,450 Ordinary shares Retained earnings Long-term liabilities Other current liabilities Accounts payable $ 12,0004,500 15,410 4,500 1,500 1,400 $34,810 5,950 3,5003,500 3,3003,300 2,2002,200 19,450 Requlred b) Prepare a consolidated statement of financial position at the date of acquisition under each of the following: i) Parent company extension theory i) Entity theory