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Question 6 (1 point) Assume that the following balance sheets are stated at book value. Suppose the fair market value of acquired firm's fixed assets
Question 6 (1 point) Assume that the following balance sheets are stated at book value. Suppose the fair market value of acquired firm's fixed assets is $11,000 versus the book value shown. The acquiring firm pays $16,000 for the acquired firm and raises the needed funds through an issue of long-term debt. Assume that the purchase method of accounting is used. Current Acquiring Firm Current liabilities $5,000 $4,000 assets Net fixed assets 25,000 Long-term debt 6,000 Equity Total 20,000 $30,000 Total $30,000 $3,000 $2,000 Current assets Net fixed assets 7,000 Acquired Firm Current liabilities Long-term debt Equity Total 5,000 3,000 $10,000 Total $10,000 What is the value of goodwill that should be shown on the post-merger balance sheet? Enter your answer in the box shown below as dollars with 2 digits to the right of the decimal point. Your
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