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

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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:

Baker Corporation purchases a 60% interest in Hardee Company on
Baker Corporation purchases a 60% interest in Hardee Company on

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.

Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...
Distribution
The word "distribution" has several meanings in the financial world, most of them pertaining to the payment of assets from a fund, account, or individual security to an investor or beneficiary. Retirement account distributions are among the most...
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Advanced Accounting

ISBN: 978-1305084858

12th edition

Authors: Paul M. Fischer, William J. Tayler, Rita H. Cheng

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