Using the data given in Problem 2-1, assume that Roland Company exchanged 14,000 of its $45 fair value ($1 par value) shares for 16,000 of

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Using the data given in Problem 2-1, assume that Roland Company exchanged 14,000 of its $45 fair value ($1 par value) shares for 16,000 of the outstanding shares of Downes Company.

The following fair values applied to Downes's assets:
Other current assets.............................$ 70,000
Inventory...........................................80,000
Land................................................90,000
Building..........................................150,000
Equipment.......................................100,000
Required
1. Record the investment in Downes Company and any other purchase-related entry.
2. Prepare the value analysis schedule and the determination and distribution of excess schedule.
3. Prepare a consolidated balance sheet for July 1, 2016, immediately subsequent to the purchase.

Assets Roland Downes $ 70,000 60,000 40,000 120,000 110,000 $400,000 Other current assets $ 50,000 120,000 100,000 300,000 430,000 $1,000,000 Land Building (net) Equipment (net Total assets Liabilities and Equi Current liabilities Common stock ($1 par) Paidin capital in excess of par Retained eamings $ 180,000 40,000 360,000 420,000 $60,000 20,000 180,000 140,000 $400,000 Total liabilities and equity $1,000,000