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Go to Edit > Puppet Warp and add 6 anchor points in the horse (see image below for reference).
Follow the arrows in the image above and move the front legs of the horse closer to the ladder, and then you should have something like this:
To fix the horsehair, we're going to do the same thing that we did with the hair of the girls. Select the Smudge Tool again and with a small brush click and drag the horsehair following the image below.
Add the shadow of the horse in the turtle like we did before, create a new layer called Shadow and place it behind the horse layer.
Now open the turtle group and Ctrl/Command-click the thumbnail of the turtle. After that, paint the shadow with a hard brush following the image below.
Go to Filter > Blur > Gaussian Blur and set the Radius to around 3px.
Your image should be similar to this one now:
To finish this step, add these last layer we created in a group called Horse and place it behind the ladder group.
Step 19: Add the ladder shadow
Adding the shadow to the horse made me realize we forgot (well, I forgot) to add the shadow to the ladder, so open the Ladder group again.
Add a new layer, call it Shadow, and place it behind the ladder layer. After that paint the shadow following the image below.
Then add a Gaussian Blur (Filter > Blur > Gaussian Blur) with a radius of 3px to our shadow layer.
Now your image should be similar the one below and we're ready to move on with our manipulation.
Step 20: Add the buildings behind the elephant
Open the skyline stock and select the buildings with the Quick Selection Tool (W). Don't worry too much about the lower part because it won't be seen in our scene.
Copy and paste the skyline in our scene, resize it with the Free Transform Tool (Ctrl/Command+T) and place it on the top of the elephant.
Create a new group for this layer, name it Skyline and place it behind the elephant group.
Your scene should look like this now:
Step 21: Add the mountain above the elephant
Open the mountain stock and select the mountain using the Quick Selection Tool (W). Don't worry too much about the lower edges, we will erase them later.
Copy and paste the mountain into our project and resize it using the Free Transform Tool. After that, place the mountain on the top of the elephant like this: