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). . . . . . ....

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. View Solution:

Baker Corporation purchases a 60 interest in Hardee Company on