Problem:
A nursing home has recently acquired a home health firm for $850,000 in cash. The balance sheet of the home health firm looked as follows prior to the acquisition: Current Assets $ 200,000 Net Fixed Assets $ 100,000 Total $ 300,000 Current liabilities $ 100,000 Shareholders' equity $ 200,000 Total $ 300,000 Assume that the fair market value of the net fixed assets is $300,000 and the fair market value of the current assets is $200,000.
Required:
Question: Describe how this acquisition might reflect on the balance sheet of the nursing home.
Note: Please provide full description.