Silver Enterprises has acquired All Gold Mining in a merger transaction. The following balance sheets represent the premerger book values for both firms:

Silver EnterprisesCurrent assets$5,800Current liabilities$3,800Other assets2,200Long-term debt8,500Net fixed assets25,300Equity21,000Total$33,300Total$33,300

All Gold MiningCurrent assets$2,300Current liabilities$1,550Other assets710Long-term debt0Net fixed assets10,800Equity12,260Total$13,810Total$13,810

Construct the balance sheet for the new corporation assuming that the transaction is treated as a purchase for accounting purposes. The market value of All Gold Mining's fixed assets is $12,050; themarket values for current and other assets are the same as the book values. Assume that Silver Enterprises issues $18,000 in new long-term dept to finance the acquisition.

Silver Enterprises, post-mergerCurrent assets$Current liabilities$Other assetsLong-term debtNet fixed assetsEquityGoodwillTotal$Total$

Three Guys Burgers, Inc., has offered $21 million for all of the common stock in Two Guys Fries, Corp. The current market capitalization of Two Guys as an independent company is $15.2 million. Assume the required return is 8.5 percent and the synergy from the acquisition is a perpetuity.

What is the minimum annual synergy that Three Guys feels it will gain from the acquisition?