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Balance Sheets for Mergers [LO2] Silver Enterprises has acquired All Gold Mining in a merger transaction. Construct the balance sheet for the new corporation if
Balance Sheets for Mergers [LO2] Silver Enterprises has acquired All Gold Mining in a merger transaction. Construct the balance sheet for the new corporation if the merger is treated as a pooling of interests for accounting purposes. The following balance sheets represent the premerger book values for both firms:
Silver Enterprises | |||
Current Assets | 4800 | Current Liabilities | 2800 |
Other Assets | 1200 | Long-term debt | 7500 |
Net fixed assets | 15300 | Equity | 11000 |
Total | 21300 | Total | 21300 |
All Gold Mining | |||
Current Assets | 1300 | Current Liabilities | 1350 |
Other Assets | 510 | Long-term debt | 0 |
Net fixed assets | 6800 | Equity | 7260 |
Total | 8610 | Total | 8610 |
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