Prepare the Consolidated Statement of Financial Position after the combination assuming:

a. All of Big Company's shares were exchanged for Small Co.'s shares.

PROBLEM 5 {Reverse Acquisition} {in January 2, 22 Small Company issued 2.5 shares in exchange for each ordinary share of Big Company. The fair value of Big Company's shares on that date is P13] while the fair value of Small Company's shares is P48. The Statement of Financial Position of the combining entities immediatelyr before the combination shoillllI the following: Small Big Compmy Company Assets 5.4m 1 1 +1I2llli Liabilities 2,1t] SAGE Share Capital 1 ordinary shares EGG St] ordinary shares LEW Retained earnings 2.4m 4+2t} Total liabilities and equity 5,4t} 11+1t} On January 2, 202B. Small Company's identiable assets and liabilities have fair values of P and P2,1, respectively. Required: Prepare the Consolidated Statement of Financial Position after the combination assuming: a. All of Big lCorn paan shares were exchanged for Small Cd's shares. b. L'Jnlyr 90% of Big Company's shares were exchanged for Sm all Sofa shares