Acquiring Company buys 100% of Target Company’s equity for \($5\) million in cash. As an analyst, you are given the premerger balance sheets for the two companies. Assuming plant and equipment are revalued upward by \($500,000,\) what will be the combined companies’ shareholders’ equity plus total liabilities? What is the difference between Acquiring Company’s shareholders’ equity and the shareholders’ equity of the combined companies? The combined companies’ shareholders’ equity plus total liabilities is \($7.1\) million, and the change between the combined companies’ and Acquiring Company’s shareholders’ equity is \($5\) million. Note that the change in the acquirer’s equity equals the purchase price.