Question

Silver Enterprises has acquired All Gold Mining in a merger transaction. The following balance sheets represent the premerger book values for both firms:

Silver Enterprises
Current assets	$	5,600		Current liabilities	$	3,600
Other assets		2,000		Long-term debt		8,300
Net fixed assets		23,300		Equity		19,000
Total	$	30,900		Total	$	30,900

All Gold Mining
Current assets	$	2,100		Current liabilities	$	1,510
Other assets		670		Long-term debt		0
Net fixed assets		10,000		Equity		11,260
Total	$	12,770		Total	$	12,770

Construct the balance sheet for the new corporation assuming that the transaction is treated as a purchase for accounting purposes. The market value of All Gold Mining's fixed assets is $11,250; the market values for current and other assets are the same as the book values. Assume that Silver Enterprises issues $17,000 in new long-term dept to finance the acquisition.

Silver Enterprises, post-merger
Current assets	$		Current liabilities	$
Other assets			Long-term debt
Net fixed assets			Equity
Goodwill
Total	$		Total	$

Answer 1

Since there is a difference between assets and liabilities, so the difference will be the goodwill amount

Liability- Assets = 60670-44920 = $ 15750