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Assume that the following balance sheets are stated at book value. $ 6,000 Current assets Net fixed assets Meat Co. Current $13.400 liabilities 38.100 Long-term

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Assume that the following balance sheets are stated at book value. $ 6,000 Current assets Net fixed assets Meat Co. Current $13.400 liabilities 38.100 Long-term debt Equity 10,500 35,000 Total $51,500 Total $ 51,500 $ 2.000 Current assets Net fixed assets Loaf, Inc $ 4,100 Current liabilities 9.200 Long-term debt Equity 2,600 8,700 Total $13,300 Total $13,300 Suppose the fair market value of Loaf's fixed assets is $13,500 versus the $9.200 book value shown. Meat pays $20,200 for Loaf and raises the needed funds through an issue of long-term debt Construct the postmerger balance sheet under the purchase accounting method Current assets Fixed assets Goodwill Total Meat Co., post-merger Current liabilities Long-term debt Equity Total

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