Exercise 2 (LO 2) Block purchase, control with first block. Barker Corporation purchases a 60% interest in Hardwood Company on January 1, 2011, for $150,000. On that date, Hardwood Company has the following stockholders€™ equity:
Common stock ($10par) ......... $100,000
Retained earnings ............ 20,000
$120,000
Any excess of cost over fair value is due to equipment with a 10-year life.
Barker Corporation purchases another 20% interest in Hardwood Company for $40,000 on January 1, 2013, when Hardwood Company has the following stockholders€™ equity:
Common stock ($10par) ........ $100,000
Retained earnings ........... 50,000
$150,000
On December 31, 2015, Barker Corporation and Hardwood Company have the following balance sheets:

Prepare a determination and distribution of excess schedule for the January 1, 2011, acquisition and analysis of the 20% acquisition on January 1, 2013. Prepare the consolidated balance sheet of Barker Corporation and subsidiary Hardwood Company on December 31, 2015.

Barker Hardwood Assets Corporation Compan 190,000 740,000 240,000 400,000 $100,000 100,000 Property, plant, and equipment Stockholders' equity: 500,000 300,000 120,000