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Silver Enterprises has acquired All Gold Mining in a merger transaction. The following balance sheets represent the pre-merger book values for both firms: Current assets
Silver Enterprises has acquired All Gold Mining in a merger transaction. The following balance sheets represent the pre-merger book values for both firms: Current assets Other assets Net fixed assets Total Silver Enterprises $ 8,600 Current liabilities 1,800 Long-term debt 15,800 Equity $26,200 Total $ 5,200 3,700 17,300 $26,200 Current assets Other assets Net fixed assets Total All Gold Mining $2,500 Current liabilities 850 Long-term debt 5,800 Equity $9,150 Total $2,300 0 6,850 $9,150 Construct the balance sheet for the new corporation using the acquisition method. The market value of All Gold Mining's fixed assets is $5,800; the market values for current and other assets are the same as the book values. Assume that Silver Enterprises issues $10,500 in new long-term debt to finance the acquisition
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