Construct the postmerger balance sheet for firm x

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Consider the following premerger information about Firm X and Firm Y: Firm X Firm Y

Total earnings $85,000 $17,000

Shares outstanding 42,000 17,000

Per-share values:

Market $57 $22

Book $19 $10

Assume that Firm X acquires Firm Y by paying cash for all the shares outstanding at a merger premium of $8 per share, and that neither firm has any debt before or after the merger. Construct the postmerger balance sheet for Firm X assuming the use of the purchase accounting method. (Do not round intermediate calculations.)

Assets from X $

Assets from Y

Goodwill

Total Assets XY $

Reference no: EM132804706

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