Problem
Osicom Tech is acquiring Rexon's outstanding common stock for $55 million. Before acquisition financial information on these two firms is given as follows (in $ millions):
|
|
Osicom Tech
|
Rexon
|
|
Total assets
|
$280
|
$70
|
|
Liabilities
|
80
|
30
|
|
Stockholders' equity
|
200
|
40
|
What are the total assets and stockholders' equity (in $ millions) if the purchase method is used as the accounting method for this merger?