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:

Acquisition 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:

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.

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Smith Company Balance S July 1, 2015 Assets Liabilities and E Cash $100,000 Current liabilities 250,000 Bonds payable $80,000 500,000 $580,000 Property, plant, and equipment: Stockholders'equity: Land Buildings (net) Equipment (net $200,000 250,000 200,000 Common stock Paid-in capital in excess of par Retained earnings $200,000 650,000 $1,000,000 100,000 20,000420,00 Total assets Total liabilities and equity $1,000,000