Question: Silver Enterprises has acquired All Gold mining in a merger transaction. Construct the balance sheet for the new corporation if the merger is treated as
Silver Enterprises has acquired All Gold mining in a merger transaction. Construct the balance sheet for the new corporation if the merger is treated as a pooling of interests for accounting purposes. The following balance sheets represent the premerger book values for both firms:
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Silver Enterprises Current assets $ 4,300 Current liabilities $ 2,600 900 Long-term debt Other assets 1,800 Net fixed assets 7,900 Equity 8,700 $13.100 Total Total $13,100 All Gold Mining Current assets$1,300 Current liabilities $ 1,200 Other assets 450 Long-term debt Net fixed assets 3,900 Equity 4,450 Total $5,650 Total $ 5,650
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