On January 1, 2021, Marshall Company acquired 100 percent of the outstanding common stock of Tucker Company. To acquire these shares, Marshall issued $350,000 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 $31,000 to accountants, lawyers, and brokers for assistance in the acquisition and another $15,500 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 Tucker Company Book Value $ 22,000 Marshall Company Book Value $ 88,500 325,000 168,000 416,000 237,000 214,000 256,000 473,000 284,000 242,000 50,700 (191,000) (55,500) (529,000) (350,000) (110,000) (120,000) (360,000) (568,500) 0 (492,200) Common stock-$1 par value Common stock-$20 par value Additional paid-in capital Retained earnings, 1/1/21 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 $9,900, Land by $20,400, and Buildings by $28,400. Marshall plans to maintain Tucker's separate legal identity and to operate Tucker as a wholly owned subsidiary.