On January 1, 2015, John Doe Enterprises (JDE) Acquired a 55

question 92

Essay

On January 1, 2015, 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, 2015.
For internal reporting purposes, JDE employed the equity method to account for this investment.
Prepare a schedule to determine goodwill, and the amortization and allocation amounts.

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Definitions:

Authoritarian Societies

Societies characterized by strict obedience to authority at the expense of personal freedom.

Gender Roles

Social and behavioral norms that are considered appropriate for individuals of a specific gender within a certain culture.

Innate Biological Differences

Natural variations in physiological or genetic characteristics that exist among individuals from birth.

Genes

Units of heredity made up of DNA that are responsible for the genetic traits passed from parents to offspring.