Statements of Financial Position for Mergers The fair market value of Target Corp.'s net fixed assets is $15,000. Acquisition Corp. pays $20,000 cash to the shareholders of Target Corp. to purchase the firm. Acquisition Corp. issues long-term debt to finance the entire purchase of Target Corp.

The following are the statements of financial position of the two firms:

Acquisition Corp. Current assets 5,000 Current liabilities 4,000 Fixed assets 30,000 Long-term debt 11,000 Goodwill - Equity 20,000 Total 35,000 35,000 Target Corp. Current assets 5,000 Current liabilities 1,000 Fixed assets 10,000 Long-term debt 2,000 Goodwill - Equity 12,000 Total 15,000 15,000

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

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

c) Construct the post-merger statement of financial position, including any goodwill.

Please show all the working, thankyou