Silver Enterprises has acquired All Gold Mining in a merger transaction.The following balance sheets represent the premerger book values for both firms. Assume the merger is treated as a pooling of interests for accounting purposes.The total assets are _____ and the total equity is _____ on the post-merger balance sheet.
A)$24,500; $10,500
B)$24,500; $18,200
C)$26,300; $10,500
D)$26,300; $16,600
E)$27,500; $19,400

Question

Silver Enterprises has acquired All Gold Mining in a merger transaction.The following balance sheets represent the premerger book values for both firms.  Assume the merger is treated as a pooling of interests for accounting purposes.The total assets are _____ and the total equity is _____ on the post-merger balance sheet.
A)$24,500; $10,500 
B)$24,500; $18,200 
C)$26,300; $10,500 
D)$26,300; $16,600 
E)$27,500; $19,400

Quizplus · Accepted Answer

Post-merger total assets = $17,400 + $10,100 = $27,500Post-merger total equity = $11,300 + $8,100 = $19,400

Silver Enterprises Has Acquired All Gold Mining in a Merger