Firm A plans to acquire firm B by offering to purchase all outstanding shares at a 20% merger premium.

Firm A Firm B Total earnings $ 94,000 $ 22,000 Shares outstanding 50,000 20,000 Per-share values: Market $ 50 $ 20 Book $ 30 $ 5

Firm A will finance the acquisition by issuing bonds. Determine the total assets of the combined company using the purchase accounting method.

Question 14 options:

	$1,980,000
	$2,980,000
	$1,900,000
	$1,280,000
	$480,000