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

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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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.

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
Transcribed Image Text: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
Transcribed Image Text: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
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