5.- Coca-Cola Corporation has acquired Pepsi-Cola in a merger transaction.

The fixed Assets of Coca-Cola have a market value of 10 Billions, the market values for the other assets are the same as book values.

The market value for Pepsi-Cola fixed assets is 400 Billions, the market values for the other assets are the same as book values.

Assume that Coca-Cola issues 800 Billions in new long-term debt to finance the acquisition.

The following balance sheets represent the premerger book values.

Coca-Cola
Current assets	100	Current liabilities	95
Other assets	50	Long-term debt	15
Net fixed assets	200	Equity	240
Total	350		350
Pepsi-Cola
Current assets	95	Current liabilities	80
Other assets	60	Long-term debt	300
Net fixed assets	250	Equity	25
Total	405		405

Prepare the balance sheet for the new corporation if the merger is treated as a purchase for accounting purposes.