Baker Hardee Assets Corporation Company Current assets ... Investment in Hardee Company Property, plant, and equipment. $ 285,000 175,000 $ 80,000 740,000 240,000 Total assets. . $1,200,000 $320,000 Baker Hardee Liabilities and Stockholders' Equity Corporation Company Current liabilities.. Stockholders' equity: Common stock ($10 par). Retained earnings. $ 400,000 $100,000 500,000 100,000 300,000 120,000 Total liabilities and stockholders' equity $1,200,000 $320,000
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: (attached)
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.
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