Business, 02.04.2021 01:30 Redbox6670

Silver Enterprises has acquired All Gold Mining in a merger transaction. The following balance sheets represent the premerger book values for both firms: Silver Enterprises Current assets $ 9,200 Current liabilities $ 4,960 Other assets 2,300 Long-term debt 4,390 Net fixed assets 16,500 Equity 18,650 Total $ 28,000 Total $ 28,000 All Gold Mining Current assets $ 2,280 Current liabilities $ 1,980 Other assets 820 Long-term debt 0 Net fixed assets 5,390 Equity 6,510 Total $ 8,490 Total $ 8,490 Construct the balance sheet for the new corporation if the merger is treated as a purchase for accounting purposes. The market value of All Gold Mining's fixed assets is $6,790; the market values for current and other assets are the same as the book values. Assume that Silver Enterprises issues $12,740 in new long-term debt to finance the acquisition. (Do not round intermediate calculations and round your answers to the

Answers: 3

Show answers

Other questions on the subject: Business

Business, 22.06.2019 11:20, greatsavagebeast

Mae jong corp. issues $1,000,000 of 10% bonds payable which may be converted into 10,000 shares of $2 par value ordinary shares. the market rate of interest on similar bonds is 12%. interest is payable annually on december 31, and the bonds were issued for total proceeds of $1,000,000. in accounting for these bonds, mae jong corp. will: (a) first assign a value to the equity component, then determine the liability component. (b) assign no value to the equity component since the conversion privilege is not separable from the bond.(c) first assign a value to the liability component based on the face amount of the bond.(d) use the “with-and-without” method to value the compound instrument.

Answers: 3

continue

Business, 22.06.2019 19:20, cathydaves

Bcorporation, a merchandising company, reported the following results for october: sales $ 490,000 cost of goods sold (all variable) $ 169,700 total variable selling expense $ 24,200 total fixed selling expense $ 21,700 total variable administrative expense $ 13,200 total fixed administrative expense $ 33,600 the contribution margin for october is:

Answers: 1

continue

Business, 22.06.2019 19:30, buggamarshall85

The owner of firewood to go is considering buying a hydraulic wood splitter which sells for $50,000. he figures it will cost an additional $100 per cord to purchase and split wood with this machine, while he can sell each cord of split wood for $125. if, for this machine, design capacity is 50 cords per day, effective capacity is 40 cords per day, and actual output is expected to be 32 cords per day, what would be its efficiency?

Answers: 1

continue

Business, 22.06.2019 22:30, xxcecccc

Rahm's credit card issuer calculates interest based on the outstanding balance at the end of the last billing period. what is this method of calculating interest on a credit card called?

Answers: 2

continue

You know the right answer?

Silver Enterprises has acquired All Gold Mining in a merger transaction. The following balance sheet...