The Lager Brewing Corporation has acquired the Philadelphia Pretzel Company in a vertical merger. Lager Brewing has issued \($300,000\) in new long-term debt to pay for its purchase. (\($300,000\) is the purchase price.) Construct the balance sheet for the new corporation if the merger is treated as a purchase for accounting purposes. The balance sheets shown here represent the assets of both firms at their true market values. Assume these market values are also the book values.

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LAGER BREWING CORPORATION Balance Sheet (in $ thousands) Current assets $ 400 Current liabilities $ 200 Other assets 100 Long-term debt 100 Net fixed assets 500 Equity 700 Total $1,000 Total $1,000 PHILADELPHIA PRETZEL COMPANY Balance Sheet (in $ thousands) Current assets $ 80 Current liabilities $ 80 Other assets 40 Equity 120 Net fixed assets 80 Total $200 Total $200