1.The pre merger balance sheets of firm A and B are given below.Firm A is interested...

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1.The pre merger balance sheets of firm A and B aregiven below.Firm A is interested in taking over firm B.Prepare thepost- merger balance sheet for firm A according to the pooling ofinterest method.
Firm A
Current Assets US $10000 Current Liabilities US $6000
Net Fixed Assets US$35000 Long Term Debt US $10000
Equity US$29000
Total US $45000 US$45000
Firm B
Current Assets US$4000 Current Liabilities US$2000
Net Fixed Assets US$7000 Long Term Debt US$2500
Equity US$6500
Total US$11000 US$11000
2.Using the Same balance sheets in Question 1,Preparethe post -merger balance sheet for A under the Purchase Method.Takeinto account the following additional information:
(A) The fair value of the firm B's net fixed assets isUS$10000
(B) Firm A pays US$20000 for firm Band Finances thepurchase by issuing additional long -term debt

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1.The pre merger balance sheets of firm A and B aregiven below.Firm A is interested in taking over firm B.Prepare thepost- merger balance sheet for firm A according to the pooling ofinterest method.Firm ACurrent AssetsUS $10000Current LiabilitiesUS $6000Net Fixed AssetsUS$35000Long Term DebtUS $10000EquityUS$29000TotalUS $45000US$45000Firm BCurrent AssetsUS$4000Current LiabilitiesUS$2000Net Fixed AssetsUS$7000Long Term DebtUS$2500EquityUS$6500TotalUS$11000US$110002.Using the Same balance sheets in Question 1,Preparethe post -merger balance sheet for A under the Purchase Method.Takeinto account the following additional information:(A) The fair value of the firm B's net fixed assets isUS$10000(B) Firm A pays US$20000 for firm Band Finances thepurchase by issuing additional long -term debt

	Firm A
Current Assets	US $10000	Current Liabilities	US $6000
Net Fixed Assets	US$35000	Long Term Debt	US $10000
		Equity	US$29000
Total	US $45000		US$45000

	Firm B
Current Assets	US$4000	Current Liabilities	US$2000
Net Fixed Assets	US$7000	Long Term Debt	US$2500
		Equity	US$6500
Total	US$11000		US$11000