Markco, Inc. Current assets Net fixed assets Total $2,500 $4.000 $6,500 Current liabilities Equity Total $1,800 $4,700 $6,500 Big-T Current assets Net fixed assets $6,300 $11,000 Current liabilities Long-term debt Equity Total $5,800 $2,500 $9.000 $17,300 Total $17,300 The fair market value of the fixed assets of Markco, Inc. is $8,500. Big-T paid $13,000 for Markco, Inc. with funds from a long-term debt offering. The purchase method of accounting is used. 132. What is the amount of goodwill on the books of Big-T as a result of the merger? A) $2,000 B) $4,500 $5,000 $7,000 E) $9,000 Ans: A Level: Intermediate Subject: Goodwill Type: Problems 133. What is the total amount of debt and equity on the books of Big-T after the merger? A) $17,300 $21,800 $25,800 D) $30,300 E) $36,800 Ans: D Level: Intermediate Subject: Total Debt And Equity Type: Problems