2. Award: 4.00 points Cash Receivables On January 1, 2021, Marshall Company acquired 100 percent of the outstanding common stock of Tucker Company. To acquire these shares, Marshall issued $330,000 in long-term liabilities and 20,000 shares of common stock having a par value of $1 per share but a fair value of $10 per share. Marshall paid $21,500 to accountants, lawyers, and brokers for assistance in the acquisition and another $6,500 in connection with stock issuance costs. Prior to these transactions, the balance sheets for the two companies were as follows: Marshall Company Book Value Cash Receivables Inventory Land Buildings (net) Equipment (net) Accounts payable Long-term liabilities Common stock-$1 par value Common stock-$20 par value Additional paid-in capital Retained earnings, 1/1/21 Note: Parentheses indicate a credit balance. Tucker Company Book Value 81,300 $ 33,600 274,000 140,000 429,000 147,000 200,000 271,000 478,000 315,000 215,000 63,600 (203,000) (50,100) (436,000) (330,000) (110,000) (120,000) (360,000) (568,300) 0 (470,100) In Marshall's appraisal of Tucker, it deemed three accounts to be undervalued on the subsidiary's books: Inventory by $5,250, Land by $18,800, and Buildings by $34,000. Marshall plans to maintain Tucker's separate legal identity and to operate Tucker as a wholly owned subsidiary. a. Determine the amounts that Marshall Company would report in its postacquisition consolidated balance sheet. In preparing the postacquisition balance sheet, any required adjustments to income accounts from the acquisition should be closed to Marshall's retained earnings. Other accounts will also need to be added or adjusted to reflect the journal entries Marshall prepared in recording the acquisition. b. To verify the answers found in part (a), prepare a worksheet to consolidate the balance sheets of these two comnaniae 1,2021. Consolidated Totals Required A Required B To verify the answers found in part (a), prepare a worksheet to consolidate the balance sheets of these two co January 1, 2021. (For accounts where multiple consolidation entries are required, combine all debit entries int and enter this amount in the debit column of the worksheet. Similarly, combine all credit entries into one amor this amount in the credit column of the worksheet. Input all amounts as positive values.) MARSHALL COMPANY AND CONSOLIDATED SUBSIDIARY Worksheet January 1, 2021 Inventory Land Buildings (net) Equipment (net) Total assets $ Accounts payable Long-term liabilities Common stock Additional paid-in capital Retained earnings Total liabilities and equities $ Cash Receivables Inventory Land Buildings (net) Accounts Equipment (net) Investment in Tucker Total assets Accounts payable Marshall Tucker Company Company Consolidation Entries Consolidated Totals Debit Credit S 0 S S Long-term liabilities Common stock Additional paid-in capital Retained earnings, 1/1/21 Total liabilities and equities $ 0 S 0 $ 05 0 $ 0