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: Cash Inventory Land Buildings (net) Equipment (net) TOTAL Current Liabilities Common Stock-$10 par value Common Stock - $10 par value Retained Earnings Rose Co. Daisy Co. Book Book Value Value $ 150,000 120,000 100,000 40,000 300,000 120,000 330,000 110,000 $ 70,000 60,000 1,000,000 400,000 180,000 400,000 420,000 1,000,000 60,000 200,000 140,000 TOTAL The following are fair values for Daisy's assets: Inventory $65,000, Land $100,000, Building $150,000, and Equipment $75,000. 400,000 a) Record the investment in Daisy Company and any entry necessitated by the purchase. b) Prepare a consolidated balance sheet for July 1, 2008.