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Consider the following premerger information about Firm X and Firm Y: Firm X Firm Y Total earnings $ 88,000 $ 18,500 Shares outstanding 45,000 20,000

Consider the following premerger information about Firm X and Firm Y:

Firm X Firm Y
Total earnings $ 88,000 $ 18,500
Shares outstanding 45,000 20,000
Per-share values:
Market $ 45 $ 16
Book $ 16 $ 7

Assume that Firm X acquires Firm Y by issuing long-term debt for all the shares outstanding at a merger premium of $5 per share, and that neither firm has any debt before the merger.

List the assets of the combined firm assuming the purchase accounting method is used.

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