On 1 July 20x3, Small Ltd issued 10 million new shares to owners of Sumo Pte Ltd in exchange for all of Sumo Pte Ltd’s shares. The share exchange is the result of a reverse acquisition of Small Ltd by Sumo Pte Ltd. The number of shares and other financial information just before the share issue was as follows:

Required
Assuming that the fair value per share of Sumo Pte Ltd is more reliably determinable than the inflated market price per share of Small Ltd, prepare the consolidation adjustment to eliminate the investment in the acquiree by the acquirer as at 1 July 20x3.

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Number of existing ordinary shares before the share exchange.. Market price per share.... Fair value per share.. Share capital.. Retained earnings.. Revaluation reserves. Shareholders' equity. Small Ltd 400,000 $20 Small Ltd $500,000 120,000 $620,000 Sumo Pte Ltd 6,000,000 $10 Sumo Pte Ltd $12,000,000 22,000,000 500,000 $34,500,000 There were no material under- or over-valued identifiable net assets of either Small or Sumo as of 1 July 20x3. The market price of Small Ltd rose as a result of market reactions to the news of the reverse acquisition.