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Total earnings Firm X Firm Y $95,000 $22,000 Shares 52,000 17,000 utstanding Per-share values: Market $ 52 $ 21 Book $ 15 $ 10

Total earnings Firm X Firm Y $95,000 $22,000 Shares 52,000 17,000 utstanding Per-share values: Market $ 52 $ 21 Book $ 15 $ 10

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Bhupatbhai 

Consider the following premerger information about Firm X and Firm Y: Total earnings Firm X Firm Y $95,000 $22,000 52,000 17,000 Shares outstanding Per-share values: Market Book 5969 $ 52 $ 21 $ 15 $ 10 Assume that Firm X acquires Firm Y by paying cash for all the shares outstanding at a merger premium of $6 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 and round your answers to the nearest whole number, e.g., 32.) Assets from X Assets from Y Goodwill Total Assets XY
Transcribed Image Text:Consider the following premerger information about Firm X and Firm Y: Total earnings Firm X Firm Y $95,000 $22,000 52,000 17,000 Shares outstanding Per-share values: Market Book 5969 $ 52 $ 21 $ 15 $ 10 Assume that Firm X acquires Firm Y by paying cash for all the shares outstanding at a merger premium of $6 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 and round your answers to the nearest whole number, e.g., 32.) Assets from X Assets from Y Goodwill Total Assets XY
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