1. On July 1, 2018, P Company issued 18,000 shares with $30 fair value ($10 par value) for 80% of the outstanding shares of S Company. Rose paid direct acqusition costs of $40,000. Two companies had the following balance sheets on July 1, 2018: P Co. S Co. Book Book Value Value $ 100,000 $ 20,000 120,000 60,000 Cash Inventory Land Buildings (net) Equipment (net) 150,000 300,000 330,000 90,000 120,000 110,000 TOTAL 1,000,000 400,000 50,000 130,000 400,000 Current Liabilities Common Stock - $10 par value Common Stock - $10 par value Retained Earnings 200,000 150,000 470,000 TOTAL 1,000,000 400,000 The following are fair values for S's assets: Inventory $70,000, Land $120,000, Building $150,000, and Equipment $65,000. a) Record the investment in S Company and any entry necessitated by the purchase. b) Prepare a consolidated balance sheet for July 1, 2018