On January 1, 2018, Marshall Company acquired 100 percent of the outstanding common stock of Tucker Company. To acquire these shares, Marshall issued $273,000 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:

	Marshall Company Book Value				Tucker Company Book Value
Cash	$	62,100			$	38,400
Receivables		344,000				170,000
Inventory		386,000				150,000
Land		276,000				222,000
Buildings (net)		441,000				233,000
Equipment (net)		205,000				58,500
Accounts payable		(192,000	)			(66,300	)
Long-term liabilities		(507,000	)			(273,000	)
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		(545,100	)			(412,600	)

Note: Parentheses indicate a credit balance.

In Marshalls appraisal of Tucker, it deemed three accounts to be undervalued on the subsidiarys books: Inventory by $6,850, Land by $18,800, and Buildings by $30,600. Marshall plans to maintain Tuckers separate legal identity and to operate Tucker as a wholly owned subsidiary.

A.) 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 Consolidation Entries Tucker Consolidated Marshall Accounts Company Company Totals Debit Credit $ 35,10038,400 $ 73,500 514,000 Cash 344,000 170,000 Receivables 386,000 150,0006,850 6000222,0001 233,0003 542,850 nventory 18,800 30,600 516,800 704,600 441,000 Buildings (net) ,500 263,500 Equipment (net) 205,00058 Investment in Tucker 200,000 0 0 $1,887,100 $ 871,900 $ 2,615,250 Total assets 200066,30 000 273,000 130,000 1 258,300 Accounts payable 1,053,000 130,000 Long-term liabilities 2001 20,000 Common stock 360,000 Additional paid-in capital 360,000 412,600 545,100 Retained earnings, 1/1/18 132,500 Total liabilities and owners' $ 2,007,100 $ 871,900$176,250$ 0 $ 1,933,800 equities