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Assume the Following Balance Sheets Are Stated at Book Value

question 87

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Assume the following balance sheets are stated at book value. Assume the following balance sheets are stated at book value.   Suppose the fair market value of Loaf's fixed assets is $7,200 versus the $3,300 book value shown.Meat pays $10,200 for Loaf and raises the needed funds through an issue of long-term debt.Assume the purchase method of accounting is used.The post-merger balance sheet of Meat Co.will have total debt of ______ and total equity of ______. A) $1,600; $11,500 B) $1,600; $15,400 C) $10,200; $15,400 D) $14,500; $11,500 E) $14,500; $15,400 Suppose the fair market value of Loaf's fixed assets is $7,200 versus the $3,300 book value shown.Meat pays $10,200 for Loaf and raises the needed funds through an issue of long-term debt.Assume the purchase method of accounting is used.The post-merger balance sheet of Meat Co.will have total debt of ______ and total equity of ______.

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Definitions:

Frame Alignment

A process in social movements that involves making individual participants' interests, values, and beliefs congruent with the goals and activities of the movement.

Resource Opportunism

The practice of exploiting circumstances and opportunities with minimal regard for principles or consequences in order to gain access to resources.

Revolutionary Action

An act or series of acts aimed at overthrowing a government or social system.

Resource Mobilization

The process of gathering assets, both financial and non-financial, to support and achieve specific goals and objectives, often in the context of social movements.

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