Acquirer purchases 100% of target by issuing additional stock to purchase target shares No premium is offered to the current target share price Acquirer share price at announcement is $30 Target share price at announcement is $50 Acquirer EPS next year is $3.00 Target EPS next year is $2.00 Acquirer has 4 thousand shares outstanding Target has 2 thousand shares outstanding Assuming a 40% tax rate, what are the necessary pre-tax synergies needed to break-even

Evan company reports net income of $232,000 each year and declares an annual cash dividend of $100,000. the company holds net assets of $2,130,000 on january 1, 2017. on that date, shalina purchases 40 percent of evan's outstanding common stock for $1,066,000, which gives it the ability to significantly influence evan. at the purchase date, the excess of shalina’s cost over its proportionate share of evan’s book value was assigned to goodwill. on december 31, 2019, what is the investment in evan company balance (equity method) in shalina’s financial records?