Problem 2-1 (LO 4, 5, 6, 7) 100% purchase, goodwill, consolidated balance sheet.

On July 1, 20X6, Rose Company exchanged 18,000 of its $35 fair value ($10 par value) shares for all the outstanding shares of Daisy Company. Rose paid direct acquisition costs of $20,000 and $5,000 in stock issuance costs. The two companies had the following balance sheets on July 1, 20X6:

1. Record the investment in Daisy Company and any other entry necessitated by the purchase.
2. Prepare a zone analysis and a determination and distribution of excess schedule.
3. Prepare a consolidated balance sheet for July 1, 20X6, immediately subsequent to the purchase.

Other current assets Inventory Land Buildings (net) Equipment (net) Total assets Current liabilities... Common stock ($10 par) Assets Rose $ 50,000 Daisy $ 70,000 60,000 120,000 100,000 40,000 300,000 120,000 430,000 110,000 $1,000,000 $400,000 Liabilities and Equity $ 180,000 $ 60,000 400,000 200,000 Retained earnings Total liabilities and equity 420,000 $1,000,000 140,000 $400,000