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	Daisy Co. Book Value
Cash	$ 150,000	$ 70,000
Inventory	120,000	60,000
Land	100,000	40,000
Buildings (net)	300,000	120,000
Equipment (net)	330,000	110,000
TOTAL	1,000,000	400,000
Current Liabilities	180,000	60,000
Common Stock - $10 par value	400,000
Common Stock - $10 par value		200,000
Retained Earnings	420,000	140,000
TOTAL	1,000,000	400,000

The following are fair values for Daisys assets: Inventory $65,000, Land $100,000, Building $150,000, and Equipment $75,000.

1. a) Record the investment in Daisy Company and any entry necessitated by the purchase.

2. b) Prepare a consolidated balance sheet for July 1, 2008.