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The book value of Little Statistics total assets is $400,000. Suppose Number Crunching Inc. acquires Little Statistics assets for $1 million and finances the purchase

The book value of Little Statistics total assets is $400,000. Suppose Number Crunching Inc. acquires Little Statistics assets for $1 million and finances the purchase by selling $600,000 in new stock, $300,000 in new debt, and reducing cash by $100,000. Describe how the acquisition affects Number Crunchings balance sheet.

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