Exercise 4 (LO 3) Sale of interest, control maintained. Carpenter Company has the following balance sheer on December 31, 2015: Assets $100,000 Current assets Investment in Hinckley Company Property, plant, and equipment (net) Total assets. Liabilities and Equity $150,000 Liabilities Equity 160,000 Common stock ($10 par $500,000 Retained earnings..... 100,000 390,000 $700,000 Total liabilities and equity 600,000 $700,000 The investment in Hinckley Company account reflects the original cost of an 80% interest (40,000 shares) purchased on January 1, 2012. On the date of the purchase, Hinckley stock- holders' equity has a book value of $150,000. Hinckley's other book values approximate fair values, except for a machine with a 5-yearremaining life that is undervalued by $20,000. Any additional excess is attributed to goodwill. A review of Hinckley's past financial statements reveals the following: 2012 2013 Income $ 10,000 25,000 Dividends Paid $ 5,000 5,000 Income Dividends Paid 2014 2015 Total. 40,000 35,000 $110,000 5,000 5,000 $20,000 Carpenter sells 2,000 shares of Hinckley common stock on January 1, 2016, for $40,000. Prepare the necessary entries on Carpenter's books to account accurately for the sale of the 2,000 Hinckley shares. Provide a determination and distribution of excess schedule along with all other necessary computations as support