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 ($1 par value) shares for 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: Assets Roland Downes Inventory Land Building (net) Equipment (net). $50,000 120,000 100,000 300,000 430,000 $1,000,000 70,000 60,000 40,000 120,000 110,000 $400,000 . Liabilities and Equity $180,000 40,000 360,000 420,000 $1,000,000 $ 60,000 20,000 180,000 140,000 $400,000 Current liabilities Paid-in capital in excess of par Retained earnings... Total liabilities and equity .. The following fair values applied to Downes's assets: 70,000 80,000 90,000 150,000 100,000 Inventory Land Equipment