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Unformatted text preview: Student Name: Class: Problem 02-19 MARSHALL COMPANY 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 transaction as follows: Fair value of consideration transferred Fair value of net assets acquired Gain on bargain purchase Record 3 transactions that occurred to create the business combination: MARSHALL COMPANY General Journal Account Debit Credit (To record liabilities and stock issued for Tucker acquisition at fair value) (To record payment of combination 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 Allocation to specific accounts based on fair value: Inventory Land Buildings Bargain purchase (fair market value in excess of purchase price) Student Name: Class: Problem 02-19 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 Student Name:...
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- Spring '08