Presented below are the book values and fair values of the assets and liabilities of Axtel, Inc. and Barcel, Inc. on October 4, 2016, immediately prior to a business combination. The Company is evaluating where Axtel should be the acquirer or if Barcel should be the acquirer.

	Axtel, Inc		Barcel, Inc.
	Book value	Fair value	Book value	Fair value
Current assets	$ 40,000	$ 100,000	$ 50,000	$ 25,000
PP&E	$ 200,000	$ 400,000	$ 150,000	$ 175,000
Current liabilities	$ 70,000	$ 70,000	$ 30,000	$ 30,000
Common stock	$ 80,000		$ 60,000
Retained earnings	$ 90,000		$ 110,000

Previously unreported identifiable intangibles, capitalized per GAAP are:

Axtel, Inc. $25,000

Barcel, Inc. $20,000

What does the balance sheet of the acquiring firm if

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.