On June 30, 2020, Wisconsin, Inc., issued $274,800 in debt and 17,700 new shares of its $10 par value stock to Badger Company owners in exchange for all of the outstanding shares of that company. Wisconsin shares had a fair value of $40 per share. Prior to the combination, the financial statements for Wisconsin and Badger for the six-month period ending June 30, 2020, were as follows (credit balances in parentheses) Badger $ (396,000) 289,000 $ (107.000) 5 (218,000) (107,000) Revenues Expenses Net Income Retained earnings, 1/1 Net Income Dividends declared Retained earnings, 6/30 Cash Receivables and Inventory Patented technology (net) Equipment (net) Total assets Liabilities Common stock Additional paid in capital Retained earning Total liabilities and equities Wisconsin 5 (994, 000) 212,000 $ (282,000) $ (818,000) (282,000) 90.750 $(1,001,250) $ 86,250 457,000 905,000 260.000 $ 2,208,250 (577,000) (360.000) (270,000) 1,001,250 5(2,200,250) $ (325,000) $ 62.000 161,000 333,00 66,000 $ 1,219,000 $ (424,000) (200,000) (270,000) (325.000) 5(1,219,000) Wisconsin also paid $39,500 to a broker for arranging the transaction. In addition, Wisconsin paid $46.700 in stock issuance costs Badger's equipment was actually worth $813.000, but its patented technology was valued at only $308,200 2 Pe-BUNTO hers Ch On January 1, 2021, Marshall Company acquired 100 percent of the outstanding common stock of Tucker Company to acquire these shares Marshall issued $311,000 in long-term abilities 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 $24,500 to accountants, lawyers, and brokers for assistance in the acquisition and another $9.500 in connection with stock issuance costs Prior to these transactions, the balance sheets for the two companies were as follows Sook rence Cash Receivables Inventory Land Buildings (net) Equipment (net) accounts payable Longtern abilities Coron stock-s1 par value Common Stock-$20 a value Additional paid in capital Stained earnings. 1/1/21 Harshall Company Hook Value $ 68,700 314,000 421,00 294,000 509,000 220,000 191.000 (432,000 (110,000 Tucker Company Hook Value $ 23.500 184.000 204,000 243,000 244,000 52,500 155,000) 311,000 (120,000) (360,000 267,200 461,500 Note Parenthese indicate a credit balance in Marshal's appraisal of Tucker it deemed the accounts to be undervalued on the subsidiary books. Inventory by 56,900. Cand by $27.200, and Buildings by 531400 Marshall plans to maintain Tuckor separate legal dentity and to operate Tuch as a wholly owned subsidity