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 arrying Amount S Company arrying air Plant and equipment (net) $ 9 Investment in S Company Inventory Accounts receivable Cash Amount Value $ 8,3007,000 5,3005,500 6,660 6,150 4,500||2,550| 3,300 3,300 2,550 Ordinary shares Retained earnings Long-term liabilities Other current liabilities Accounts payable $12,000$ 4,500 15,410 4,500 1,500 1,400 5,950 3,500 3,500 3,300 3,300 2,200 2,200 Required b) Prepare a consolidated statement of financial position at the date of acquisition under each of the following: i) ii) Parent company extension theory 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 arrying Amount S Company arrying air Plant and equipment (net) $ 9 Investment in S Company Inventory Accounts receivable Cash Amount Value $ 8,3007,000 5,3005,500 6,660 6,150 4,500||2,550| 3,300 3,300 2,550 Ordinary shares Retained earnings Long-term liabilities Other current liabilities Accounts payable $12,000$ 4,500 15,410 4,500 1,500 1,400 5,950 3,500 3,500 3,300 3,300 2,200 2,200 Required b) Prepare a consolidated statement of financial position at the date of acquisition under each of the following: i) ii) Parent company extension theory Entity theory