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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 | $ | 4,800 | Current liabilities | $ | 2,800 | ||
Other assets | 1,200 | Long-term debt | 7,500 | ||||
Net fixed assets | 15,300 | Equity | 11,000 | ||||
Total | $ | 21,300 | Total | $ | 21,300 | ||
All Gold Mining | |||||||
Current assets | $ | 1,300 | Current liabilities | $ | 1,350 | ||
Other assets | 510 | Long-term debt | 0 | ||||
Net fixed assets | 6,800 | Equity | 7,260 | ||||
Total | $ | 8,610 | Total | $ | 8,610 | ||
Construct the balance sheet for the new corporation if the merger is treated as a pooling of interests for accounting purposes. |
Silver Enterprises, post-merger | |||||
Current assets | $ | Current liabilities | $ | ||
Other assets | Long-term debt | ||||
Net fixed assets | Equity | ||||
Total | $ | Total | $ |
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