1. On July 1, 2008, Rose Company exchanged 18,000 of its $35 fair value ($10 par value) shares for 16,000 of the outstanding shares of Daisy Company. Rose paid direct acqusition costs of $20,000 and $50,000 in stock issuance costs. Two companies had the following balance sheets on July 1, 2008: Rose Co. Book Value $ 150,000 120,000 Daisy Co. Book Value $ 70,000 60,000 Cash Inventory Land Buildings (net) Equipment (net) 100,000 300,000 330,000 40,000 120,000 110,000 TOTAL 1,000,000 400,000 60,000 180,000 400,000 Current Liabilities Common Stock - $10 par value Common Stock - $10 par value Retained Earnings 200,000 140,000 420,000 TOTAL 1,000,000 400,000 The following are fair values for Daisy's assets: Inventory $65,000, Land $100,000, Building $150,000, and Equipment $75,000. a) Record the investment in Daisy Company and any entry necessitated by the purchase. b) Prepare a consolidated balance sheet for July 1, 2008