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1.The pre merger balance sheets of firm A and B aregiven below.Firm A is interested in taking over firm B.Prepare thepost- merger balance sheet for firm A according to the pooling ofinterest method.Firm ACurrent AssetsUS $10000Current LiabilitiesUS $6000Net Fixed AssetsUS$35000Long Term DebtUS $10000EquityUS$29000TotalUS $45000US$45000Firm BCurrent AssetsUS$4000Current LiabilitiesUS$2000Net Fixed AssetsUS$7000Long Term DebtUS$2500EquityUS$6500TotalUS$11000US$110002.Using the Same balance sheets in Question 1,Preparethe post -merger balance sheet for A under the Purchase Method.Takeinto account the following additional information:(A) The fair value of the firm B's net fixed assets isUS$10000(B) Firm A pays US$20000 for firm Band Finances thepurchase by issuing additional long -term debt