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On July 1 2016 Roland Company exchanged 18000 of its $45 fair value $1 par value shares for all the outstanding shares

On July 1, 2016, Roland Company exchanged 18,000 of its $45 fair value ($1 par value) shares for all the outstanding shares of Downes Company. Roland paid acquisition costs of $40,000. The two companies had the following balance sheets on July 1, 2016: The following fair values applied to Downes s assets: Other current assets.............................$ 70,000 Inventory...........................................80,000 Land................................................90,000 Building..........................................150,000 Equipment.......................................100,000 Requirement 1. Record the investment in Downes Company and any other entry necessitated by the purchase. 2. Prepare the value analysis and the determination and distribution of excess schedule. 3. Prepare a consolidated balance sheet for July 1, 2016, immediately subsequent to the purchase.

Apr 24 2020 View more View Less

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