Balance Sheets for Mergers Silver Enterprises has acquired All Gold Mining in a merger transaction. Construct the balance sheet for the new corporation if the merger 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 $13,800 in new long-term debt to finance the acquisition. The following balance sheets represent the premerger book values for both firms:

Silver Enterprises Current assets $ 8,600 Current liabilities $ 5,200 Other assets 1,800 Long-term debt 3,700 Net fixed assets 15,800 Equity 17,300 Total $26,200 Total $26,200 All Gold Mining Current assets $2,500 Current liabilities $ 2,300 Other assets 850 Long-term debt 0 Net fixed assets 5,800 Equity 6,850 Total $9,150 Total $ 9,150