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Consider the following premerger information about Firm X and Firm Y: Firm X Firm Y Total earnings $ 9 5 , 0 0 0 $
Consider the following premerger information about Firm X and Firm Y:
Firm X Firm Y
Total earnings $ $
Shares outstanding
Pershare values:
Market $ $
Book $ $
Assume that Firm X acquires Firm Y by paying cash for all the shares outstanding at a merger premium of $ per share, and that neither firm has any debt before or after the merger. Construct the postmerger balance sheet for Firm X assuming the use of the purchase accounting method. Do not round intermediate calculations and round your answers to the nearest whole number, eg
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