Assume that the following balance sheets are stated at book value. Suppose that Meat Co. purchases Loaf, Inc.

The fair market value of Loaf's fixed assets is $9,500 versus the $6,700 book value shown. Meat pays $17,300 for Loaf and raises the needed funds through an issue of long-term debt. Construct the postmerger balance sheet under the purchase accounting method.

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Meat Co. Current assets Net fixed assets $15,000 39,000 Current liabilities 5,400 10,100 38,500 $54,000 Long-term debt Equity Total4000 oal Loaf, Inc. Current assets Net fixed assets $ 3,600 Current liabilities 1,400 2,100 6,800 $10,300 6,700Long-term debt Equity Total Total $10,300