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Consider the following premerger information about Firm X and Firm Y: Firm X Firm Y Total earnings $ 79,000 $ 14,000 Shares outstanding 36,000 11,000

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

Firm X Firm Y
Total earnings $ 79,000 $ 14,000
Shares outstanding 36,000 11,000
Per-share values:
Market $ 51 $ 16
Book $ 11 $ 6

Assume that Firm X acquires Firm Y by paying cash for all the shares outstanding at a merger premium of $8 per share, and that neither firm has any debt before or after the merger.

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

Assets from X $
Assets from Y
Goodwill
Total Assets XY $

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