Silver Enterprises Has Acquired All Gold Mining in a MergerAssume the Merger Is Treated as a Pooling of Interests

The Answer of Silver Enterprises Has Acquired All Gold Mining in a MergerAssume the Merger Is Treated as a Pooling of Interests

Silver Enterprises Has Acquired All Gold Mining in a MergerAssume the Merger Is Treated as a Pooling of Interests

The Answer of Silver Enterprises Has Acquired All Gold Mining in a MergerAssume the Merger Is Treated as a Pooling of Interests

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Silver Enterprises Has Acquired All Gold Mining in a Merger

question 32

Multiple Choice

Silver Enterprises has acquired All Gold Mining in a merger transaction.The following balance sheets represent the premerger book values for both firms. $\begin{array}{lrlr} & {\text { Silver Enterprises }} \\\text { Current assets } & \$ 5,900 & \text { Current liabilities } & \$ 4,100 \\\text { Other assets } & 2,600 & \text { Long-term debt } & 2,000 \\\text { Net fixed assets } & \$ \$, 900 & \text { Equity } & \underline{11,300} \\\text { Total } & \underline{\$ 17,400} & \text { Total } & \underline{\$ 17,400}\end{array}$

$Silver Enterprises has acquired All Gold Mining in a merger transaction.The following balance sheets represent the premerger book values for both firms. \begin{array}{lrlr} & {\text { Silver Enterprises }} \\ \text { Current assets } & \$ 5,900 & \text { Current liabilities } & \$ 4,100 \\ \text { Other assets } & 2,600 & \text { Long-term debt } & 2,000 \\ \text { Net fixed assets } & \$ \$, 900 & \text { Equity } & \underline{11,300} \\ \text { Total } & \underline{\$ 17,400} & \text { Total } & \underline{\$ 17,400} \end{array} 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; $19,400$

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.

Definitions:

Internal Causes

Factors within a person, such as personal traits or motivations, that influence behavior.

Fundamental Attribution Error

The tendency to make attributions to internal causes when focusing on someone else’s behavior.

Behavior

The action or reaction of an entity (usually a person), in response to external or internal stimuli.

Social Perception

The process by which individuals form impressions and make inferences about other people and social situations based on observable cues and contextual information.