In Problem 30.3, suppose the fair market value of James€™s fixed assets is $12,000 versus the $7,100 book value shown. Jurion pays $17,000 for James and raises the needed funds through an issue of long-term debt. Construct the post-merger balance sheet now.

In Problem 30.3

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Jurion Co. 8,000 Current liabilities $4,500 8,500 18,000 $31,000 Current assets Net fixed assets $23,000 Long-term debt Equity Total $31,000 Total James Inc 2,600 Current liabilities $1,900 1,200 6.600 $9,700 Current assets Net fixed assets $7,100 ong-term debt Equity Total $9,700 Total