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Question: In the previous problem, construct the balance

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. Data from previous problem
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.
Data from previous problem





Transcribed Image Text:

Silver Enterprises Current assets $ 8,600 Current liabilities $ 5,200 Other assets 1,800 Long-term debt 3,700 Net fixed assets 15,800 Equity 17,300 Total $26,200 Total $26,200 All Gold Mining Current assets $2,500 Current liabilities $ 2,300 Other assets 850 Long-term debt Net fixed assets 5,800 Equity 6,850 Total $9,150 Total $ 9,150



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