On January 1, 2021, Marshall Company acquired 100 percent of the outstanding common stock of Tucker Company. To acquire these shares, Marshall issued $272,000 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 $32,000 to accountants, lawyers, and brokers for assistance in the acquisition and another $16,500 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	$	79,200			$	32,800
Receivables		287,000				109,000
Inventory		437,000				239,000
Land		281,000				211,000
Buildings (net)		423,000				236,000
Equipment (net)		233,000				54,600
Accounts payable		(156,000	)			(68,700	)
Long-term liabilities		(465,000	)			(272,000	)
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		(649,200	)			(421,700	)

Note: Parentheses indicate a credit balance.

In Marshalls appraisal of Tucker, it deemed three accounts to be undervalued on the subsidiarys books: Inventory by $9,000, Land by $23,400, and Buildings by $36,000. Marshall plans to maintain Tuckers separate legal identity and to operate Tucker as a wholly owned subsidiary.

Determine the amounts that Marshall Company would report in its post-acquisition consolidated balance sheet. In preparing the post-acquisition 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.

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.

\begin{tabular}{|l|l|} \hline & Consolidated Totals \\ \hline Cash & \\ \hline Receivables & \\ \hline Inventory & \\ \hline Land & \\ \hline Buildings (net) & \\ \hline Equipment (net) & \\ \hline Total assets & \\ \hline Accounts payable & \\ \hline Long-term liabilities & \\ \hline Common stock & \\ \hline Additional paid-in capital & \\ \hline Retained earnings & \\ \hline \multicolumn{1}{|l|}{ Total liabilities and equities } & $ \\ \hline \end{tabular}