Mergers and Acquisiions Axtel, Inc. Barcel, Inc. Book Value 50,000 50,000 $200,000 Fair Value $25,000 175,000 Book Value Fair Value Current assets Property, plant and equipment..200,000 40,000 $100,000 400,000 Total assets . $240,000 . . $70,000 30,000 80,000 90,000 60,000 30,000 10,000 $200,000 Previously unreported identifiable intangibles, capitalized per GAAP, are: Axtel, Inc. $25,000 Barcel, Inc. 20,000 Required Prepare the balance sheet of the acquiring firm following each of the following business combinations: (1) Axtel borrows $250,000 on a long-term basis and buys full ownership of Barcel for $250,000 a. cash. The transaction is recorded as a merger. (2) Barcel borrows $505,000 on a long-term basis, and buys full ownership of Axtel for $505,000 cash. The transaction is recorded as a merger