Look again at Table 31.3 . Suppose that B Corporation’s fixed assets are reexamined and found to be worth $12 million instead of $9 million. How would this affect the AB Corporation’s balance sheet under purchase accounting? How would the value of AB Corporation change? Would your answer depend on whether the merger is taxable?

Visit us at www.mhhe.com/bma 820 Part Ten Mergers, Corporate Control, and Governance CHALLENGE AppendixLO1