Consider the following premerger information about Firm X andFirm Y: Firm X Firm Y Total earnings $ 88,000 $ 18,500 Sharesoutstanding 45,000 20,000 Per-share values: Market $ 45 $ 16 Book $16 $ 7 Assume that Firm X acquires Firm Y by paying cash for allthe shares outstanding at a merger premium of $5 per share, andthat neither firm has any debt before or after the merger.Construct the postmerger balance sheet for Firm X assuming the useof the purchase accounting method. (Do not round intermediatecalculations.)
Assets from X $
Assets from Y
Goodwill
Total Assets XY $
