5. Financial reporting for merpers The Financial Accounting Standariss board (Frsia) elininated the use of pocling-of -intereses method for the accounting of merger sccurring afier ley 1. 3001 . Since then, all meroers havo been handled using parchase accocanting. Consider the following case: Company A buys Company B for $30, The value of Cortpany Bis equity (totat arsets minus its total habilies) is $50. Which of the following statements best descibes the ronger's effect an the merocd cermbatys consolidated balance sheve? On the contolidated balance shest, the value of Company fis assets wat be weitten down (recorded) en Compary Ais books at a value lower than was recorded on Compary. E' bopiss, lower than was recoeded ori Corncent bris books. currentiy priced at se0.00 per sha.s Sangers shy te are tracing for 548.00 per ghare. Nationa has oftered a 20% premiam over the current peice for: Sander's shar ns:will recelve for each share soid, wat b0,211 According to the terms of the purchace, the transaction's exchange ratio, which indicates the eamber ef hational shares that each Sarger sharchelder will receive for each share sald, will be 0.121 Given this inficrmation ind that which follows, coendete the table recarding the National 5 anoce merged. the taget. The re urget is evented to create syeergistic beriefint for the target condans 5. Financial reporting for merpers The Financial Accounting Standariss board (Frsia) elininated the use of pocling-of -intereses method for the accounting of merger sccurring afier ley 1. 3001 . Since then, all meroers havo been handled using parchase accocanting. Consider the following case: Company A buys Company B for $30, The value of Cortpany Bis equity (totat arsets minus its total habilies) is $50. Which of the following statements best descibes the ronger's effect an the merocd cermbatys consolidated balance sheve? On the contolidated balance shest, the value of Company fis assets wat be weitten down (recorded) en Compary Ais books at a value lower than was recorded on Compary. E' bopiss, lower than was recoeded ori Corncent bris books. currentiy priced at se0.00 per sha.s Sangers shy te are tracing for 548.00 per ghare. Nationa has oftered a 20% premiam over the current peice for: Sander's shar ns:will recelve for each share soid, wat b0,211 According to the terms of the purchace, the transaction's exchange ratio, which indicates the eamber ef hational shares that each Sarger sharchelder will receive for each share sald, will be 0.121 Given this inficrmation ind that which follows, coendete the table recarding the National 5 anoce merged. the taget. The re urget is evented to create syeergistic beriefint for the target condans