Consider the following premerger information about Firm X and Firm Y: ...
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Accounting
Consider the following premerger information about Firm X and Firm Y:
| Firm X | Firm Y | |||||
| Total earnings | $ | 80,000 | $ | 14,500 | ||
| Shares outstanding | 37,000 | 12,000 | ||||
| Per-share values: | ||||||
| Market | $ | 52 | $ | 17 | ||
| Book | $ | 12 | $ | 7 | ||
Assume that Firm X acquires Firm Y by paying cash for all the shares outstanding at a merger premium of $7 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 $______
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