Exercise 2 (LO 3. Acquisition with goodwill. 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 Slock 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: Smith Company Balance Sheet July 1, 2015 Liabilities and Equity Assets $ 100,000 Current liabilities $ 80,000 250,000 Bonds payable ... 500,000 Property, plant, and equipment: Stockholders' equity: Land. $200,000 Common stock..... $200,000 Buildings (net) ............ 250,000 Paid-in capital in excess of par ... 100,000 Equipment (net) 200,000 650,000 Retained earnings ........... 120,000 $1,000,000 Total liabilities and equity... Cash... Inventory ...... $ 580,000 420,000 $100 Total assets ... Part 1 COMBINED CORPORATE ENTITIES AND CONSOUD The appraised fair values as of July 1, 2015, is as follows: Inventory ..... Equipment...... Land.. Buildings ......... Current liabilities .... Bonds payable ............ $270,000 220,000 180,000 300,000 80,000 425,000 Record the acquisition of Smyth Company on the books of Radar Corporation, ercise 3 (LO3. 4) Acquisiti