In the previous problem, construct the statement of financial position for the new corporation, assuming that the transaction is treated as a purchase for accounting purposes. The market value of Leamington’s fixed assets is $9,100; the market values for current and other assets are the same as the In the previous problem, construct the statement of financial position for the new corporation, assuming that the transaction is treated as a purchase for accounting purposes. The market value of Leamington’s fixed assets is $9,100; the market values for current and other assets are the same as the acquisition. 

Data in previous problem, 

Knapps Enterprises has acquired Leamington Corp. in a merger transaction. Construct the statement of financial position for the new corporation if the merger is treated as a pooling of interests for accounting purposes. The following statements of financial position represent the premerger book values for both firms: 

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Current assets Other assets Net fixed assets Total Current assets Other assets Net fixed assets Total Knapps Enterprises $ 5,300 1,500 17,900 $24,700 Current liabilities Long-term debt Equity Total Leamington Corp. $ 1,400 570 7,400 $ 9,370 Current liabilities Long-term debt Equity Total $ 3,100 7,800 13,800 $24,700 $ 1,460 0 7,910 $ 9,370