Assume that the following balance sheets are stated at book value.
Jurion Co
Current assets $ Current liabilities $
Net fixed assets Longterm debt
Equity
Total $ Total $
James, Inc.
Current assets $ Current liabilities $
Net fixed assets Longterm debt
Equity
Total $ Total $
Suppose the fair market value of James's fixed assets is $ versus the $ book value shown. Jurion pays $ for James and raises the needed funds through an issue of longterm debt. Construct the postmerger balance sheet under the purchase method of accounting.
