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Consider the following premerger information about Firm X and Firm Y: Firm Y $87,000$11,000 35,00012,000 Firm X Total earnings Shares outstanding Per-share values: Market $
Consider the following premerger information about Firm X and Firm Y: Firm Y $87,000$11,000 35,00012,000 Firm X Total earnings Shares outstanding Per-share values: Market $ 57 19 3 Book Assume that Firm X acquires Firm Y by paying cash for all the shares outstanding at a merger premium of S6 per share. Assuming that neither firm has any debt before or after the merger Elconstruct the postmerger balance sheet for Firm X assuming the use of purchase accounting Input Area: Firm X Firm Y Total earnings Shares outstanding Per-share values Market Book Merger premium Output Area: Asset from X (book value) Asset from Y (market value) Purchase price of Y Goodwill Total assets XY - Total equity XY S
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