Answer:
Firm X and Firm Y
Post-merger Balance Sheet for Firm X
Net assets         $886,000
Goodwill                90,000
Total assets      $976,000
Common stock $742,000
Long-term debt  234,000
Total liabilities and
 equity              $976,000
Explanation:
a) Data and Calculations:
                                     Firm X      Firm Y
Total earnings         $96,000    $22,500
Shares outstanding   53,000       18,000
Per-share values:
Market                            $53             $18
Book                               $14               $8
Net assets              $742,000   $144,000
=                       (53,000*$14)     (18,000*$8)
Net assets = Common Stock for each company
Merger premium on Firm Y         $5
Goodwill on acquisition = $90,000 (18,000 * $5)
Investment in Firm Y = $234,000 (18,000 * ($8 + $5)
Long-term debt issued = $234,000
Net assets
Firm X net assets before acquisition = $742,000
Firm Y net assets before acquisition =    144,000
Net value of combined assets =           $886,000