Part a. Marshall and Tucker Consolidated Balances Marshall's acquisition of Tucker represents a bargain purchase because the fair value of the net assets acquired exceeds the fair value of the consideration transferred as follows: Fair value of net assets acquired Fair value of consideration transferred Gain on bargain purchase Record three transactions that occurred to create the business combination: MARSHALL COMPANY General Journal Account Debit Credit (To record liabilities and stock issued for Tucker acquisition fair value) (To record payment of professional fees) (To record payment of stock issuance costs) Marshall's trial balance is adjusted for the transactions (as shown in the worksheet that follows). Consideration transferred at fair value Book value (assets minus liabilities or stockholders' equity) Book value in excess of consideration transferred Allocation to specific accounts based on fair value: Inventory Land Buildings Gain on bargain purchase (excess net asset fair value over consideration transferred) Account Name Balance Explanation Cash Receivables Inventory Land Buildings Equipment Total Assets Accounts Payable Long-term Liabilities Common Stock Additional Paid-In Capital Retained Earnings Total Liabilities & Equity