On January 1, 2020, John Doe Enterprises (JDE) Acquired a 55

question 90

Essay

On January 1, 2020, John Doe Enterprises (JDE) acquired a 55% interest in Bubba Manufacturing, Inc. (BMI). JDE paid for the transaction with $3 million cash and 500,000 shares of JDE common stock (par value $1.00 per share). At the time of the acquisition, BMI's book value was $16,970,000.On January 1, JDE stock had a market value of $14.90 per share and there was no control premium in this transaction. Any consideration transferred over book value is assigned to goodwill. BMI had the following balances on January 1, 2020. For internal reporting purposes, JDE employed the equity method to account for this investment.The following account balances are for the year ending December 31, 2020 for both companies. Required:Prepare a consolidation worksheet for this business combination. Assume goodwill has been reviewed and there is no goodwill impairment.

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Definitions:

Circadian Sleep Rhythm

The natural, internal process that regulates the sleep-wake cycle, repeating roughly every 24 hours.

Basal Metabolic Rate

The speed at which the body consumes energy to support essential activities like breathing and staying warm when it is at rest.

Dreaming Process

The experience of imagined images, sounds, or other sensations during sleep, particularly during REM sleep phases.

Personal Hygiene

Practices and routines aimed at maintaining one’s body cleanliness and health, often encompassing bathing, oral care, and grooming.