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- J anong common stock of lucker Company lo acquire these shares, Marshall issued S273,000 in long-term liabilities and 20,000 shares of common stock having

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- J anong common stock of lucker Company lo acquire these shares, Marshall issued S273,000 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 $21,000 to accountants, lawyers, and brokers for assistance in the acquisition and another $6.000 in connection with stock issuance costs. Prior to these transactions, the balance sheets for the two companies were as follows: Receivables Inventory Land Buildings (net) Equipment (net) Accounts payable Long-tere liabilities Con stock-$1 par value Common stock-520 par value Additional paid.in capital Retained earnings, 1/1/ Marshall Company Book Value $ 2,100 344.00 300.000 276,000 141.000 205,000 (192.00) (507.000) (110,000) Tucker Company Book Value 38,400 170.00 150,000 222.000 233,00 58.5 (65,300) (273,000) (120.00) (360,000) (545,100) (412,600) Note: Parentheses indicate a credit balance. In Marshall's appraisal of Tucker, it deemed three accounts to be undervalued on the subsidiary's books Inventory by $6,850, Land by $18.800 and Buildings by $30,600. Marshall plans to maintain Tucker's separate legal identity and to operate Tucker as a wholly owned subsidiary .. Determine the amounts that Marshall Company would report in its postacquisition 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 companies as of January 1, 2018

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