On January 1, 2021, Marshall Company acquired 100 percent of the outstanding common stock of Tucker Company. To acquire these shares, Marshall Issued $318,000 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 $20,000 to accountants, lawyers, and brokers for assistance in the acquisition and another $5,000 in connection with stock issuance costs. Prior to these transactions, the balance sheets for the two companies were as follows: Cash Receivables Inventory Land Buildings (net) Equipment (net) Accounts payable Long-term liabilities Connon stock-$1 par value Common stock-$20 par value Additional paid in capital Retained earnings, 1/1/21 Marshall Company Book Value 70,200 289.990 381,000 224,000 474,000 227, eee (172,000) (446,000) (110,000 Tucker Company Book Value $ 35, see 113,000 218,000 221,800 307,000 66,00 (50,100) (318,000) (120,000) (360,000) (568,200) (471,900) 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 $7100. Land by $30,800, and Buildings by $33,200. 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 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, 2021 Prey 1 of 1 !!! Next Search O DELL 8 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 Show more Consolidated Totals Cash Receivables 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 $ 0 $ 0 RE Required B Prey 1 of 1 Next earch o BI DELL To verify the answers found in part (a), prepare a worksheet to consolidate the balance sheets of these two companies as of January 1, 2021. (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. Input all amounts as positive values.) Show less MARSHALL COMPANY AND CONSOLIDATED SUBSIDIARY Worksheet January 1, 2021 Accounts Consolidation Entries Marshall Company Tucker Company Consolidated Totals Debit Credit Cash Receivables Inventory Land S 0 S 0 S Buildings (net) Equipment (net) Investment in Tucker Total assets Accounts payable Long-term liabilities Common stock Additional paid in capital Retained earnings 1/121 0 Total liabilities and equities S 0 S 0 $ 0 $ 0 $ 0 Pre 1 of 1 Next search o DELL 6