uestion S. Silver Enterprises has acquired All Gold Mining in a merger transaction. Construct the...
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uestion S. Silver Enterprises has acquired All Gold Mining in a merger transaction. Construct the balance she the new corporation if the merger is treated as a purchase for accounting purposes. The market value of Mining's fixed assets is S5,800; the market vaTuesTor current and other assets are the same as the s. Assume that Silver Enterprises issues $13,800 in new long-term debt to finance the acquisition ing balance sheets represent the premerger book values for both firms: (20 points) Silver Enterprises Current assets $8,600 Current liabilities $5,200 Other assets Net fixed assets 15,800 Equity 1,800 Long-term debt 3,700 17,300 $26,200 Total All Gold Mining Current assets $2,500 Current liabilities $2,300 Total $26,200 Other assets 850 Long-term debt Net fixed assets 5,800 Equity 6,850 $9,150 Total $9150 Total
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