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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

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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 Current assets S 6,100 Current liabilities $ 4,100 Other assets 2,500 Long-term debt 8,800 Net fixed assets 28,300 Equity 24,000 Total S 36,900 Total $36,900 $ 1,610 Current assets Other assets Net fixed assets All Gold Mining $ 2,600 Current liabilities 770 Long-term debt 12,000 Equity 13,760 Total $15,370 Total $15,370 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 $13,250; the market values for current and other assets are the same as the book values. Assume that Silver Enterprises issues $19,500 in new long-term dept to finance the acquisition. $ Current assets Other assets Net fixed assets Goodwill Silver Enterprises, post-merger 8700 Current liabilities 3270 Long-term debt 41550 Equity 283 24000 Total $ Total

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