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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 $ 6,100 Current liabilities $ 4,100 Other assets 2,500 Long-term debt 8,800 Net fixed assets 28,300 Equity 24,000 Total $36,900 Total $36,900 Current assets Other assets Net fixed assets All Gold Mining $ 2,600 Current liabilities $ 1,610 770 Long-term debt 0 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 Silver Enterprises, post-merger Current assets Current liabilities Other assets Long-term debt Net fixed assets Equity Goodwill Total Total

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