Question: Question 27 (3 points) Assume that the following balance sheets are stated at book value. Suppose the fair market value of acquired firm's fixed assets

 Question 27 (3 points) Assume that the following balance sheets are

Question 27 (3 points) Assume that the following balance sheets are stated at book value. Suppose the fair market value of acquired firm's fixed assets is $13,000 versus the book value shown. The acquiring firm pays $18,000 for the acquired firm and raises the needed funds through an issue of long-term debt. Assume that the purchase method of accounting is used. $4,000 Current assets Net fixed assets Acquiring Firm Current $5,000 liabilities 25,000 Long-term debt Equity $30,000 Total 6,000 20,000 $30,000 Total Acquired Firm Current $3,000 liabilities Current assets Net fixed assets $2,000 7,000 Long-term debt 5,000 Equity Total 3,000 $10,000 Total $10,000 What is the value of goodwill that should be shown on the post-merger balance sheet? Enter your answer in the box shown below as dollars with 2 digits to the right of the decimal point. Your

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