On December 31, Year 1, P Company purchased 80% of the outstanding shares of S Company for $6,800 cash. The statements of financial position of the two companies immediately after the acquisition transaction appear below. P Company S Company Carrying Carrying Fair Amount Amount Value Plant and equipment (net) Investment in S Company Inventory Accounts receivable Cash $ 8,400 $ 6,700 $5,500 6,800 5,460 4,050 4,500 3,750 2,100 2,100 2,100 1,350 1,350 $26,510 $14,200 Ordinary shares $10,800 $ 3,300 Retained earnings 9,110 5,500 Long-term liabilities 4,200 2,300 2,300 Other current 1,500 liabilities 2,100 2,100 Accounts payable 900 1,000 1,000 $26,510 $14,200