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CH 2 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 $30,500 to accountants, lawyers, and brokers for assistance in the acquisition and another $15,000 in connection with stock issuance costs. 3 points Prior to these transactions, the balance sheets for the two companies were as follows: eBook References Cash Receivables Inventory Land Buildinga (net) Equipment (net) Accounts payable Long-teem liabilities Common stock-$1 par value Connon tock-620 par value Additional pidin capital Retained warnings, 1/1/21 Marshall Company Book Valo $ 85,800 361.000 362.000 269.000 425,000 217,000 (214,000) (488,000) (110,000) Tucker Company Book Value $ 39.600 189,000 211,000 185,000 276,000 $2,200 (66.300) 310,000) 120.000) (360,000) (547,00) 456,00) Note: Parentheses indicate a credit balance In Marshall's appraisal of Tucker, it deemed three accoqnts to be undervalued on the subsidiary's books: Inventory by $6.400, Land by $25,000, and Buildings by $29,200. 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 consolidated balance sheet In preparing the postacquisition bolance 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 2 Required A Required B To verify the answers found in part (), 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 antries 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 3 points eBook Print References MARSHALL COMPANY AND CONSOLIDATED SUBSIDIARY Worksheet January 1, 2021 Marshall Tucker Consolidation Entries Consolidated Accounts Company Company Debit Totals Credit Cash Receivables Inventory Land Buildings (net) Equipment (net) Investment in Tucker $ Total assets 0 os Accounts payable Long-term liabilities Common stock Additional paid in capital Retained earnings, 1/1/21

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