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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: Silver Enterprises
Silver Enterprises has acquired All Gold Mining in a merger transaction. The following balance sheets represent the premerger book values for both firms: |
Silver Enterprises | |||||||
Current assets | $ | 10,200 | Current liabilities | $ | 8,560 | ||
Other assets | 3,300 | Long-term debt | 5,290 | ||||
Net fixed assets | 17,500 | Equity | 17,150 | ||||
Total | $ | 31,000 | Total | $ | 31,000 | ||
All Gold Mining | |||||||
Current assets | $ | 3,080 | Current liabilities | $ | 2,780 | ||
Other assets | 1,520 | Long-term debt | 0 | ||||
Net fixed assets | 6,290 | Equity | 8,110 | ||||
Total | $ | 10,890 | Total | $ | 10,890 | ||
Construct the balance sheet for the new corporation if the merger is treated as a purchase for accounting purposes. The market value of All Gold Mining's fixed assets is $7,690; the market values for current and other assets are the same as the book values. Assume that Silver Enterprises issues $15,140 in new long-term debt to finance the acquisition. (Do not round intermediate calculations and round your answers to the nearest whole number, e.g., 32.) |
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