To complete Excel Spreadsheet below:

Problem 2-1
Common Information
Ownership Interest		100%
Price Paid	Cash	Number of Shares	Market Price per Share		Total
		18,000	45		810,000
Acquired Downes's Balance Sheet Before Purchase
	Book Value	Market Value			Book Value	Market Value	Fair Value
Assets				Liabilities
Other current assets	70,000			Current liabilities	(60,000)
Inventory	80,000			Common Stock
Land	90,000			Paid-in Capital	(792,000)
Building	150,000
Equipment	100,000
				Equity	(18,000)
Goodwill	380,000
Total Assets	870,000	0		Total Liabilities and Equity	(870,000)	0	######
Value Analysis	Company Implied Fair Value	Parent Price	NCI Value
Price Paid	810,000	810,000	n/a
Fair Value of Net Assets Excluding Goodwill	430,000	430,000
Goodwill	380,000	380,000
Gain on Acquisition	380,000	380,000
Determination and Distribution of Excess Schedule
	Company Value	Parent Price	NCI
Fair Value of Subsidiary	810,00	810,000	n/a
Less Book Value of Interest Acquired	340,000
Common Stock	18,000
Paid in Excess	792,000
Retained Earnings
Total Equity
Interest Acquired
Book Value
Excess of Cost over Book Value
Accounts Adjusted		Worksheet Distribution
Goodwill
Gain on Acquisition
Total	0
Problem 2-1 Consolidated Worksheet
	Balance sheet			Eliminations				NCI	Consol.
	Roland	Downes	Key	Dr	Key		Cr		Bal. Sht.
Other Current Assets	10,000	70,000
Inventory	120,000	60,000
Land	100,000	40,000
Building (net)	300,000	120,000
Equipment (net)	430,000	110,000
Investment in Downes	720,000
Current Liabilities	(180,000)	(60,000)
Common Stock-Downes		(20,000)
Paid in Capital-Downes		#######
Retained Earnings-Downes		#######
Common stock - Roland	(58,000)
Paid in Capital in excess of par	#########
Retained earnings- Roland	(380,000)
Totals	0	0
NCI
Totals

Problem 2-1(LC) 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 Inventory Land Building (net) Equipment (net).. 50,000 120,000 100,000 00,000 430,000 70,000 60,000 40,000 120,000 110,000 1,000,000 $400,000 Liabilities and E 180,000 40,000 360,000 420,000 60,000 20,000 80,000 40,000 $400 000 Retained earnings otal liabilities and equity 1,000,000 The following fair values applied to Downes's assets: Other current assets . Inventory Land Building Equipment 70,000 80,000 90,000 150,000 100,000 Required. Recond 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. 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 (Si par value) shares for 16,000 of th e outstanding shares of Downes