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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. $ 4,300
Silver Enterprises has acquired All Gold Mining in a merger transaction. The following balance sheets represent the premerger book values for both firms. $ 4,300 Silver Enterprises Current Current $ 6,300 assets liabilities Other assets 2,700 Long-term debt Net fixed 30,300 Equity assets 9,000 26,000 Total $39,300 Total $ 39,300 Current assets All Gold Mining Current $ 2,800 liabilities Long-term 810 debt $ 1,650 Other assets 0 Net fixed assets 12.800 Equity 14.760 Total $ 16,410 Total $ 16.410 Net fixed assets 12,800 Equity 14.760 Total $ 16.410 Total $16,410 Construct the balance sheet for the new corporation assuming that the transaction is treated as a purchase of interests for accounting purposes. The market value of All Gold Mining's fixed assets is $14,050, the market values for current and other assets are the same as the book values. Assume that Silver Enterprises issues $20,500 in new long- term debt to finance the acquisition. Current assets Silver Enterprises, post-merger Current liabilities Long-term debt Equity Other assets Net fixed assets Goodwill Total Total
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