Question: In the previous problem, construct the balance sheet for the new corporation assuming that the transaction is treated as a purchase for accounting purposes. The

In the previous problem, construct the balance sheet for the new corporation assuming that the transaction is treated as a purchase for accounting purposes. The market value of All Gold Mining's fixed assets is $5,800; the market values for current and other assets are the same as the book values. Assume that Silver Enterprises issues $10,500 in new long-term debt to finance the acquisition.

In the previous problem,

In the previous problem, construct the balance sheet for the

Silver Enterprises Current assets Other assets Net fixed assets 5,200 3,700 17.300 $26,200 $ 8,600 Current liabilities Long-term debt Equity 1,800 Total $26,200 Total All Gold Mining $2,300 Current assets Other assets Net fixed assets $2,500 850 5,800 $9,150 Current liabilities Long-term debt Equity 6.850 $9,150 Total Total

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