Problem 2-1 (LO 3, 4, 5, 6 100% purchase, goodwill, consolidated balance sheet. On July 1, 2016, Roland Company exchanged 18,000 of its $45 fair value (81 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: Assels Roland Downes Other current assets.. $ 50,000 $ 70,000 Inventory 120,000 60,000 Land 100,000 40,000 Building (nett 300,000 120,000 Equipment (nett 430,000 110,000 Total assets. $1,000,000 $400,000 Liabilities and Equity Current liabilities. $ 180,000 $ 60,000 Common stock ($1 parl 40,000 20,000 Paid.in capital in excess of par 360,000 180,000 Retained earnings 420,000 140,000 Total liabilities and equity $1,000,000 $400,000 The following fair values applied to Downes's assets: Other current assets. $ 70,000 Inventory B0,000 Lond 90,000 Building 150,000 Equipment 100,000 1. Record the investment in Downes Company and any other entry nccessicated 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. Problem 2-2 (LO 3, 4, 5, 6, 7) 80% purchase, goodwill, consolidated balance sheet. Using the data given in Problem 2-1, assume that Roland Company exchanged 14,000 of its $45 fair value ($i par value) shares for 16,000 of the outstanding shares of Downes Company. 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 Required X Required