Calculating Synergy Holmes, Inc., has offered $215 million cash for all of the common stock in Watson Corporation. Based on recent market information, Watson is worth $193 million as an independent operation. If the merger makes economic sense for Holmes, what is the minimum estimated value of the synergistic benefits from the merger?

Balance Sheets for Mergers Consider the following premerger information about Firm X and Firm Y:

	Firm X	Firm Y
Total earnings	$ 95,000.00	$ 43,200.00
Shares outstanding	41,800.00	26,500.00
Per-share values:
Market	$ 53.00	$ 19.00
Book	$ 21.00	$ 9.00

Assume that Firm X acquires Firm Y by issuing long-term debt to purchase all the shares outstanding at a merger premium of $5 per share. Assuming that neither firm has any debt before the merger, construct the postmerger balance sheet for Firm X assuming the use of the purchase accounting method