In Problem 30.5, construct the balance sheet for the new corporation, assuming that the transaction is treated as a purchase for accounting purposes. The market value of All Gold Mining€™s fixed assets is $5,800; the market values for current and other assets are the same as the book values. Assume that Silver Enterprises issues $10,500 in new long term debt to finance the acquisition.

In Problem 30.5

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Silver Enterprises Current assets Other assets Net fixed assets $8,600 Current liabilities 5,200 3,700 17,300 $26,200 1,800 Long-term debt 15,800 Equity Total $26,200 Total All Gold Mining $2,500 Current liabilities Current assets Other assets Net fixed assets $2,300 850 Long-term debt 5,800 Equity $9,150Total 6,850 $9,150 Total