On January 1, 2015, Marshall Company acquired 100 percent of the outstanding common stock of Tucker Company. To acquire these shares, Marshall issued $204,250 in long-term liabilities and 22,400 shares of common stock having a par value of $1 per share but a fair value of $10 per share. Marshall paid $36,450 to accountants, lawyers, and brokers for assistance in the acquisition and another $24,800 in connection with stock issuance costs.

Prior to these transactions, the balance sheets for the two companies were as follows:

	Marshall Company Book Value	Tucker Company Book Value
Cash	$ 73,000	40450
Receivables	301,000	96300
Inventory	389,000	163000
Land	266,000	195000
Buildings (net)	413,000	243000
Equipment (net)	172,000	55500
Accounts Payable	(206,000)	(47250)
Long-term Liabilities	(498,000)	259000
Common Stock $1 Par Value	(110,000)
Common Stock $20 Par Value		(120,000)
Additional Paid-in capital	(360,000)	0
Retained Earnings 1-1-15	(440,000)	(367,000)

Note: Parentheses indicate a credit balance.

In Marshalls appraisal of Tucker, it deemed three accounts to be undervalued on the subsidiarys books: Inventory by $8,500, Land by $24,000, and Buildings by $39,750. Marshall plans to maintain Tuckers separate legal identity and to operate Tucker as a wholly owned subsidiary.

A. 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 Marshalls retained earnings.

B. Prepare a worksheet to consolidate the balance sheets of these two companies as of January 1, 2015. (For accounts where multiple consolidation entries are required, combine all debit entries into one amount and enter this amount in the debit column of the worksheet. Similarly, combine all credit entries into one amount and enter this amount in the credit column of the worksheet.)