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Assume that the following balance sheets are stated at book value Meat Co Current $14,600 Current $6,600 11,100 36,800 $54,500 liabilities assets Net fixed 39,900
Assume that the following balance sheets are stated at book value Meat Co Current $14,600 Current $6,600 11,100 36,800 $54,500 liabilities assets Net fixed 39,900 Long-term debt assets Equity Total $54,500 Total Loaf, Inc. Current $ 4700 Current $2,600 3,200 10,500 $16,300 liabilities assets 11,600 Long-termm debt Net fixed assets Equity Total $16,300 Total Suppose the fair market value of Loaf's fixed assets is $17,100 versus the $11,600 book value shown. Meat pays $23,800 for Loaf and raises the needed funds through an issue of long-term debt. Construct the postmerger balance sheet under the purchase accounting method Meat Co., post-merger Current assets Fixed assets Goodwil Current liabilities Long-term debt Equity Total Total
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