Acquiring Company buys Target Company for $5million in cash. As an analyst, you are given the premerger balance sheets for the two companies (Table). Assuming plant and equipment are revalued upward by $500,000, what will be the combined companies€™ shareholders€™ equity plus total liabilities? What is the difference between Acquiring Company€™s shareholders€™ equity and the shareholders€™ equity of the combined companies? Show yourwork.

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Premerger Balance Sheets for Companies ($ million) Acquiring Company Target Company Current Assets 800,000 1500,000 2,300,000 600,000 1,200,000 1,800,000 500,000 1,300,000 1,800,000 Plant and Equipment Total Assets Long-Term Debt Shareholders' Equity Shareholders' EquityTotal Liabilities 2,000,000 2300,000