On January 1, 2021, Marshall Company acquired 100 percent of the outstanding common stock of Tucker Company. To acquire these shares, Marshall issued $310,000 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 $27,000 to accountants, lawyers, and brokers for assistance in the acquisition and another $12,000 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	$	69,600			$	27,600
Receivables		302,000				115,000
Inventory		432,000				224,000
Land		293,000				259,000
Buildings (net)		435,000				276,000
Equipment (net)		212,000				70,200
Accounts payable		(168,000	)			(53,100	)
Long-term liabilities		(507,000	)			(310,000	)
Common stock$1 par value		(110,000	)
Common stock$20 par value						(120,000	)
Additional paid-in capital		(360,000	)			0
Retained earnings, 1/1/21		(598,600	)			(488,700	)

Note: Parentheses indicate a credit balance.

In Marshalls appraisal of Tucker, it deemed three accounts to be undervalued on the subsidiarys books: Inventory by $7,100, Land by $34,200, and Buildings by $47,200. 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 consolidated 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, 2021.

Complete this question by entering your answers in the tabs below. Required A Required B Determine the amounts that Marshall Company would report in its postacquisition consolidated 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. (Input all amounts as positive values.) Show less Consolidated Totals Cash $ 27,600 Receivables 115,000 Inventory 216,900 Land 224,800 Buildings (net) 228,800 Equipment (net) 70,200 Total assets $ 883,300 Accounts payable $ (53,100) Long-term liabilities (310,000) Common stock 20,000 Additional paid-in capital 180,000 Retained earnings 310,000 Total liabilities and equities $ 146,900 Required A Required B > Required A Required 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. (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 Totals MARSHALL COMPANY AND CONSOLIDATED SUBSIDIARY Worksheet January 1, 2021 Marshall Tucker Accounts Consolidation Entries Consolidated Company Company Debit Credit Cash $ 30.600 $ 27,600 $ 58,200 Receivables 302,000 115,000 417,000 Inventory 432,000 224,000 7,100 663,100 Land 293,000 259,000 34,200 586,200 Buildings (net) 435,000 276,000 47,200 758,200 Equipment (net) 212,000 70,200 608,700 282,2001 Investment in Tucker 697,200 88,500 0 Total assets $ 2,401,800 $ 971,800 $ 2,764.900 Accounts payable (168,000) (53.100) (221,100) Long-term liabilities (817,000) (310,000) 0 (1,127,000) Common stock (130,000) (120,000) 120,000 (130,000) Additional paid-in capital (528,000) 0 0 (528,000) Retained earnings, 1/1/21 (758,800) (488,700) 488,700 (758,800) Total liabilities and equities $ (2,401,800) $ (971,800) $697,200 $ 697,200 $ (2.764,900) Required A Required B