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 5,500 Current liabilities 3,500 1,900 Long-term debt 8,200 18,000 22,300 Equity Total $29,700 Total $29,700 All Gold Mining Current assets Other assets Net fixed assets 2,000 Current liabilities 1,490 0 10,760 650 Long-term debt Equity 9,600 Total $12,250 Total $12,250 Construct the balance sheet for the for accounting purposes. The market value of All Gold Mining's fixed assets is $10,850; the market values for current and other assets are the same as the book values. Assume that Silver Enterprises issues $16,500 in new long-term dept to finance the acquisition new corporation assuming that the transaction is treated as a purchase Silver Enterprises, post-merger Current assets Other assets Net fixed assets Goodwil Current liabilities Long-term debt Equity Total Total
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