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  3. 1.7 consider the following premerger information

1.7 Consider the following premerger information about Firm X and Firm Y: Firm X...

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Finance

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Consider the following premerger information about Firm X and Firm Y: Firm X Firm Y Total earnings $96,000 $22,500 Shares outstanding 53,000 18,000 Per-share values: $ 18 Market Book 53 $ $ 14 $ 8 Assume that Firm X acquires Firm Y by issuing long-term debt to purchases all the shares outstanding at a merger premium of $5 per share. Construct the postmerger balance sheet for Firm X assuming the use of the purchase accounting method. (Do not round intermediate calculations and round your answers to the nearest whole number, e.g., 32.) Assets from X Assets from Y Goodwill Total Assets XY LA LA

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