The fair market value of James's fixed assets is equal to

Excel File

Merger
Assume that the following balance sheets are stated at book value.
The fair market value of James's fixed assets is equal to $10,200.
Jurion pays $17,080 for James and raises the needed funds through an issue of long-term debt.
Jurion Co.
Current assets		12675		Current liabilities		5660
Net fixed assets		37350		Long-term debt		10250
				Equity		34115
Total		50025		Total		50025
James, Inc.
Current assets		3670		Current liabilities		1660
Net fixed assets		7120		Long-term debt		2170
				Equity		6960
Total		10790		Total		10790
	Fair Market Value James Fixed Assets					10,200
	Jurion Payment					17,080
Merged Balance sheet:
Current assets	16,345	(Both firms added together)		Current Liab	7,320	(Both firms added together)
Net Fixed	22,875	FMV Jams + Jur)		Long term	29,500	(Long Term Debts from Both firms plus purchase price - as amount is borrowed)
Goodwill	7,040	(see below)		Equity	34,115	(Stays the same as Firm A's original amount)
Total				Total	70,935
The goodwill amount is equal to the purchase price minus the market value of assets.
Purchase Price	17,080
Market Value FA	-10,200
MV Current Assets	-3670
MV Debts	3830
Goodwill	7,040	(Purchase Price - MV Fixed Assets - MV Current Assets + James Current Liabilit + James Long Debt)