REFERENCE: 04-15
on January 1,2020,John Doe Enterprises (JDE)acquired a 55

Essay

REFERENCE: 04-15
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.
$\begin{array}{lrr}&\text { Book } & \text { Fair } \\&\text { Value } & \text { Value } \\\text { Land } & \$ 1,700,000 & \$ 2,550,000 \\\text { Buildings (seven-year remaining life) } & 2,700,000 & 3,400,000 \\\text { Equipment (five-vear remaining life) } & 3,700,000 & 3,300,000\end{array}$
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.