On January 1, 2D12, Adams acquires 100% of Baker in a transaction accounted for using the acquisition method. Adams will use equity accounting for its investment in Baker. Baker will remain a wholly owned subsidiary of Adams. The following is information about this acquisition. To pay for this purchase, Adams issues 20,D[i[i shares of common stock with a $5 par and $20 market value. Legal and accounting costs were $5,. Stock issuance costs were $20,. If Baker has net income of $50, in 212, Adams will pay an additional $lilil,. At acquisition date there is a 40% probability of this occurring. The hook value of net assets acquired of Baker was $2DD,UUU at acquisition date. Adams was willing to pay in excess of book value to acquire Baker because Baker had a building {it} year life} with a book value of $300, and a fair value of $340,i]il. Baker has $4ii,{l in net income in ML"! and pays a dividend of $3D,[i[iil. Adams has $l, of net income in 2012 and pays a dividend of $T,{]{}. 1. Prepare an investment analysis at date of acquisition, including the following: Calculate the amount debited to the investment Calculate the premium over book value Determine the amount of goodwill or if it is a bargain purchase. How much is the excess depreciation that will be reected as consolidation entrv E in 2012 '2' PP?!\