Smith Company is acquired by Roan Corporation on July 1, 2015. Roan exchanges 60,000 shares of its $1 par stock, with a fair value of $18 per share, for the net assets of Smith Company.

Roan incurs the following costs as a result of this transaction:

Acquisiton costs................................................$25,000

Stock registration and issuance costs................10,000

Total costs.........................................................$35,000

The balance sheet of Smyth Company, on the day of the acquisition, is as follows:

Assets:

Cash............................................$100,000

Inventory........................................250,000

Property, plant, and equipment:

Land.....................$200,000

Buildings (net)........250,000

Equipment (net).....200,000..........650,000

Total assets...............................$1,000,000

Liabilities and Equity

Current liabilities.....$80,000

Bonds Payable........500,000.......$580,000

Stockholders' equity:

Common Stock......$200,000

Paid-in capital in excess of par...100,000

Retained earnings...120,000........420,000

Total Liabilities and equity.............$1,000,000

The appraised fair values as of July 1, 2015 is as follows:

Inventory................................$270,000

Equipment...............................220,000

Land........................................180,000

Buildings.................................300,000

Current liabilities.......................80,000

Bonds payable.........................425,000

Record the acquisition of Smyth Company on the books of Radar Corporation.