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 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: Assets Roland Downes Other current assets Inventory $ 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 .. Building (net) Equipment (net) Liabilities and Equity $ 180,000 40,000 360,000 420,000 $1,000,000 $ 60,000 20,000 180,000 140,000 $400,000 Common stock ($1 par) Paid-in capital in excess of par . Total liabilities and equity . The following fair values applied to Downes's assets: Land Building.. quipment. 70,000 80,000 90,000 150,000 100,000 . 1. Record the investment in Downes Company and any other entry necessitated 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