The Fair Market Value of the fiXed Assets of Markco

The fair market value of the fixed assets of Markco, Inc. is $8,500. Big-T paid $13,000 for Markco, Inc. with funds from a long-term debt offering. The purchase method
Of accounting is used.
What is the total amount of debt and equity on the books of Big-T after the merger?

A) $17,300
B) $21,800
C) $25,800
D) $30,300
E) $36,800