The world’s Largest Sharp Brain Virtual Experts Marketplace Just a click Away
Levels Tought:
Elementary,Middle School,High School,College,University,PHD
| Teaching Since: | May 2017 |
| Last Sign in: | 408 Weeks Ago, 2 Days Ago |
| Questions Answered: | 66690 |
| Tutorials Posted: | 66688 |
MCS,PHD
Argosy University/ Phoniex University/
Nov-2005 - Oct-2011
Professor
Phoniex University
Oct-2001 - Nov-2016
Balance Sheets for Mergers
Consider the following premerger information about Firm X and Firm Y:
| Â |
Firm X |
Firm Y |
|
Total earnings |
$30,000 |
$20,000 |
|
Shares outstanding |
20,000 |
20,000 |
|
Per-share values: |
 |  |
|
Market |
$ 75 |
$ 20 |
|
Book |
$ 25 |
$ 9 |
Assume that Firm X acquires Firm Y by paying cash for all the shares outstanding at a merger premium of $8 per share. Assuming that neither firm has any debt before or after the merger, construct the post -merger balance sheet for Firm X assuming the use of (a) pooling of interests accounting methods and (b) purchase accounting methods.
Hel-----------lo -----------Sir-----------/Ma-----------dam-----------Tha-----------nk -----------You----------- fo-----------r u-----------sin-----------g o-----------ur -----------web-----------sit-----------e a-----------nd -----------acq-----------uis-----------iti-----------on -----------of -----------my -----------pos-----------ted----------- so-----------lut-----------ion-----------.Pl-----------eas-----------e p-----------ing----------- me----------- on-----------cha-----------t I----------- am----------- on-----------lin-----------e o-----------r i-----------nbo-----------x m-----------e a----------- me-----------ssa-----------ge -----------I w-----------ill----------- be-----------