On January 1, 2018, Marshall Company acquired 100 percent of the outstanding common stock of Tucker Company. To acquire these shares, Marshall issued $295,000 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 $23,500 to accountants, lawyers, and brokers for assistance in the acquisition and another $8,500 in connection with stock issuance costs.

Marshall Company Book Value				Tucker Company Book Value
Cash	$	87,000			$	24,800
Receivables		314,000				147,000
Inventory		393,000				171,000
Land		230,000				268,000
Buildings (net)		480,000				221,000
Equipment (net)		190,000				63,000
Accounts payable		(214,000	)			(46,500	)
Long-term liabilities		(526,000	)			(295,000	)
Common stock$1 par value		(110,000	)
Common stock$20 par value						(120,000	)
Additional paid-in capital		(360,000	)			0
Retained earnings, 1/1/18		(484,000	)			(433,300	)

In Marshalls appraisal of Tucker, it deemed three accounts to be undervalued on the subsidiarys books: Inventory by $8,350, Land by $16,000, and Buildings by $30,200. Marshall plans to maintain Tuckers separate legal identity and to operate Tucker as a wholly owned subsidiary.

1. 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. Other accounts will also need to be added or adjusted to reflect the journal entries Marshall prepared in recording the acquisition.
2. 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.

MARSHALL COMPANY AND CONSOLIDATED SUBSIDIARY
Worksheet
January 1, 2018
Accounts	Marshall Company	Tucker Company	Consolidation Entries		Consolidated Totals
			Debit	Credit
Cash
Receivables
Inventory
Land
Buildings (net)
Equipment (net)
Investment in Tucker
Total assets	$0	$0			$0
Accounts payable
Long-term liabilities
Common stock
Additional paid-in capital
Retained earnings, 1/1/18
Total liabilities and owners' equities	$0	$0	$0	$0	$0

How do you get $