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

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Accounting

Consider the following premerger information about Firm X andFirm Y: Firm X Firm Y Total earnings $ 88,000 $ 18,500 Sharesoutstanding 45,000 20,000 Per-share values: Market $ 45 $ 16 Book $16 $ 7 Assume that Firm X acquires Firm Y by paying cash for allthe shares outstanding at a merger premium of $5 per share, andthat neither firm has any debt before or after the merger.Construct the postmerger balance sheet for Firm X assuming the useof the purchase accounting method. (Do not round intermediatecalculations.)

Assets from X $

Assets from Y

Goodwill

Total Assets XY $

Answer & Explanation Solved by verified expert
3.7 Ratings (273 Votes)
Amount in Particulars Firm X Firm Y Total earnings 88000 18500 Share Outstanding 45000 20000 Per share values Market Value    See Answer
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