Statements of Financial Position for Mergers

Given Information:

- The fair market value of Bulleye's net fixed assets is $10,000; and,

- Acme pays $15,000 cash to the shareholders of Bullseye to purchase the firm; and,

- Acme issues long-term debt to finance the purchase of Bullseye; and

- The following statements of financial position of two firms;

a) What is the amount of the post-merger long-term debt?

b) What is the amount of the fixed asset write-up?

c) Construct the post-merger statement of financial position

*Please show your work as best as possible including formulas used, Thank you.*

Acme Acquisitions Corp Current assets 10,000 Current liabilities 7,000 Fixed assets 40.000 Long-term debt 10,000 33,000 Goodwill Equity 50,000 Total 50,000 Total