The balance sheet of Van Tho Corporation reflects current assets of $6,000, net fixed assets of $8,400, current liabilities of $1,800, long-term debt of $1,100, and equity of $11,500. Meanwhile, the balance sheet of TravelWare shows current assets of $2,000, net fixed assets of $3,300, current liabilities of $900, long-term debt of $500, and equity of $3,900. The fair market value of TravelWare’s fixed assets is $4,100 versus the $3,300 book value shown. Also, assume Van Tho pays $5,200 for TravelWare 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 Van Tho will have total debt of ________ and total equity of ________.
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