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Assume that the following balance sheets are stated at book value. Meat Co. $ 15,200 Current Current assets Net fixed assets $ 6,900 liabilities 40,800

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Assume that the following balance sheets are stated at book value. Meat Co. $ 15,200 Current Current assets Net fixed assets $ 6,900 liabilities 40,800 Long-term debt Equity $56.000 $56,000 to Total 11.400 37700 Total $56,000 Loaf, Inc. $5,000 Current assets Net fixed assets 12,800 Current liabilities Long-term debt Equity $2,900 3,500 11,400 Total $ 17,800 Total $17,800 Suppose the fair market value of Loaf's fixed assets is $18,900 versus the $12,800 book value shown. Meat pays $25,600 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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