Gunnar Patel is an event-driven hedge fund manager for Senson Fund, which focuses on merger arbitrage strategies. Patel has been monitoring the potential acquisition of Meura Inc. by Sellshom, Inc. Sellshom is currently trading at \($60\) per share and has offered to buy Meura in a stock-for-stock deal. Meura was trading at \($18\) per share just prior to the announcement of the acquisition.

The offer ratio is 1 share of Sellshom in exchange for 2 shares of Meura. Soon after the announcement, Meura’s share price jumps to \($22\) while Sellshom’s falls to \($55\) in anticipation of the merger receiving required approvals and the deal closing successfully.

At the current share prices of \($55\) for Sellshom and \($22\) for Meura, Patel attempts to profit from the merger announcement. He buys 40,000 shares of Meura and sells short 20,000 shares of Sellshom.

Calculate the payoffs of the merger arbitrage under the following two scenarios:
i. The merger is successfully completed.
ii. The merger fails.