Rolan Corporation issued 10,000 shares of common stock in exchange for all of Sandin Corporation's outstanding stock on September 1. Rolan's common stock had a market price of $60 per share on September 1. The market price of Sandin's stock was not readily ascertainable. Condensed balance sheets of Rolan and Sandin immediately prior to the combination are indicated below. Total assets Liabilities Common stock ($10 par) Retained earnings Total liabilities and shareholders' equities $1,000,000 $500,000 Rolan $1,000,000 $100,000 $500,000 Rolan's investment in Sandin's stock will be stated in Rolan's parent-only balance sheet immediately after the combination in the amount of $350,000 $600,000 Sandin $500,000 $ 300,000 $150,000 200,000 100,000 500,000 250,000

Rolan Corporation issued 10,000 shares of common stock in exchange for all of Sandin Corporation's outstanding stock on September 1. Rolan's common stock had a market price of $60 per share on September 1. The market price of Sandin's stock was not readily ascertainable. Condensed balance sheets of Rolan and Sandin immediately prior to the combination are indicated below. Rolan's investment in Sandin's stock will be stated in Rolan's parent-only balance sheet immediately after the combination in the amount of $350,000 $500,000 $100,000 $600,000