Baker Corporation purchases a 60% interest in Hardee Company on January 1, 2015, for $135,000. On that date,

Hardee Company has the following stockholders' equity:

Common stock ($10 par). . . . . . . . . . . . . . . . $100,000

Retained earnings . . . . . . . . . . . . . . . . . .... . . . 20,000

......................................................$120,000

Any excess of cost over fair value is due to equipment with a 10-year life.

Baker Corporation purchases another 20% interest in Hardee Company for $40,000 on

January 1, 2017, when Hardee Company has the following stockholders' equity:

Common stock ($10 par). . . . . . . . . . . . . . . . $100,000

Retained earnings . . . . . . . . . . .... . . . . . . . . . . 50,000

......................................................$150,000

On December 31, 2019, Baker Corporation and Hardee Company have the following balance sheets:

Prepare a determination and distribution of excess schedule for the January 1, 2015, acquisition and analysis of the 20% acquisition on January 1, 2017. Prepare the consolidated balance sheet of Baker Corporation and subsidiary Hardee Company on December 31, 2019.

Transcribed Image Text:

Baker Corporation Assets Company Current assets 175,000 740,000 240,000 Baker Corporation Hardee Company liabilities and Stockholders' Equity Stockholders' equity Retained earnings Total liabilities and stockholders' equity 500,000100,000 300,000 120,000 $1,200,000 $320,000 . .. . .._ . .. .. . . . .