Silver Enterprises has acquired All Gold Mining in a merger transaction. The following balance sheets...
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Silver Enterprises has acquired All Gold Mining in a merger transaction. The following balance sheets represent the premerger book values for both firms: Current assets Other assets Net fixed assets Silver Enterprises $ 7,400 Current liabilities 2,080 Long-term debt 23,910 Equity $ 4,030 10,600 18,760 Total $ 33,390 Total $ 33,390 Current assets Other assets Net fixed assets All Gold Mining $ 2,080 Current liabilities 880 Long-term debt 9,620 Equity $ 2,070 O 10,510 Total $ 12,580 Total $ 12,580 Construct the balance sheet for the new corporation if the merger is treated as a purchase of interests for accounting purposes. The market value of All Gold Mining's fixed assets is $12,100; the market values for current and other assets are the same as the book values. Assume that Silver Enterprises issues $20,800 in new long-term debt to finance the acquisition. Silver Enterprises, postmerger Current liabilities Current assets Other assets Long-term debt Equity Net fixed assets Goodwill Total Total
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