Balance Sheets for Mergers Consider the following premerger information about firm X and firm Y :

Firm X Firm Y Total earnings $90,000 $52,200 Shares outstanding 46,800 36,000 Per-share values:

Market $ 53 $ 19 Book $ 21 $ 9 Assume that Firm X acquires Firm Y by paying cash for all the shares outstanding at a merger premium of $5 per share. Assuming that neither firm has any debt before or after the merger, construct the postmerger balance sheet for Firm X assuming the use of the purchase accounting method.