Question: Please note this is entirely one problem only so please answer the entire problem . Thank you On January 1, 2015, Marshall Company acquired 100
On January 1, 2015, 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 $10 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 Tucker Company Company Book Value Book Value Cash Receivables Inventory Land Buildings (net) Equipment (net) Accounts payable Long-term liabilities Common stock -$1 par value Common stock-$20 par value Additional paid-in capital Retained earnings, 1/1/15 S 60,000 S 20,000 270,000 90,000 360,000 140,000 200,000180,000 420,000 220,000 50,000 (150,000) (40,000) 430,000) (200,000) 160,000 (110,000) (120,000) (360,000) (420,000) (340,000) indicate a credit balance
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