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Chapter 7 Exercise 2: Block purchase, control with first block. Baker corporation purchases a 60% interest in Hardee company on january 1, 2015 for $135,000. On that date, hardee company has the following stockholder's equity. Common Stock (10 par) $100,000 RE $20,000 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 stockholder's equity: Common stock (10 par) $100,000 RE $50,000 On December 31, 2019, Baker Corporation and HArdee company have the following balance sheets: Assets Barker Corp. Hardee Company Current Assets $285,000 $80,000 Investment in Hardee Company $175,000 PPE $740,000 $240,000 Total Assets $1,200,000 $320,000 Liabilities and Stockholder's Equity Barker Corp. Hardee Company Current Liabilities $400,000 $100,000 Stockholder's Equity: COmmon Stock (10 Par) $500,000 $100,000 Retained Earnings $300,000 $120,000 Total Liabilities and Stockholder's Equity $1,200,000 $320,000 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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