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Silver Enterprises has acquired All Gold Mining in a merger transaction. The following balance sheets represent the premerger book values for both firms: Construct the
Silver Enterprises has acquired All Gold Mining in a merger transaction. The following balance sheets represent the premerger book values for both firms: Construct the balance sheet for the new corporation assuming that the transaction is treated as a purchase of interests for accounting purposes. The market value of All Gold Mining's fixed assets is $12,100; the market values for current and other assets are the same as the book values. Assume that Silver Enterprises issues $20,800 in new longterm debt to finance the acquisition
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