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Xcel 2. On January 1, 2021, Marshall Company acquired 100 percent of the outstanding common stock of Tucker Company. To acquire these shares, Marshall issued

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Xcel 2. On January 1, 2021, Marshall Company acquired 100 percent of the outstanding common stock of Tucker Company. To acquire these shares, Marshall issued $200,000 in long-term liabilities and 20,000 shares of common stock having a par value of $1 per share but a fair value of S10 per share. Marshall paid $30,000 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 $ 60,000 $ 20,000 Receivables 270,000 90,000 Inventory 360,000 140,000 Land 200.000 180.000 Buildings (net) 420,000 220,000 Equipment (net) 160,000 50,000 Accounts payable (150,000) (40,000) Long term liabilities (430,000) (200,000) 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 (420,000) (340,000) 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 $5,000, Land by $20,000, and Buildings by $30,000. Marshall plans to maintain Tucker's separate legal identity and to operate Tucker as a wholly owned subsidiary. a Determine the amounts that Marshall Company would report in its postacquisition 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 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

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