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on january 1 2006 john doe enterprises jde bought a 55 interest in bubba manufacturi 4240056

On January 1, 2006, John Doe Enterprises (JDE) bought a 55% interest in Bubba Manufacturing, Inc. (BMI). JDE paid for the transaction with $3.5 million cash and 400,000 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 $17.25 per share. Any cost over book value is assigned to goodwill, which is not amortized. BMI had the following balances on January 1, 2006. 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, 2006 for both companies.Requireda. Prepare a schedule to determine the amortization and allocation amounts. b. Prepare a consolidation worksheet for this business combination. Assume goodwill has been reviewed and there is no goodwill impairment. Show the eliminations on the worksheet above. Insert any additional accounts on the worksheet that areneeded.
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On January 1 2006 John Doe Enterprises JDE bought a

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