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

question 14

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:

Abdomen

The part of the body that lies between the thorax (chest) and the pelvis, containing most of the digestive organs among others.

Thoracic Cavity

The chamber of the body protected by the rib cage, containing the lungs and heart, among other organs.

Left Arm

The upper limb on the left side of the body, extending from the shoulder to the hand.

Right Arm

The right arm refers to the limb on the right side of the body extending from the shoulder to the wrist, including all the joints, muscles, and bones within this area.