Consolidated Financial Statements and Outside Ownership

On January 1 , 2011, John Doe Enterprise bought a 55% interest in Bubba Manufacturing, Inc. (BMI). JDE paid for the transaction with $403,338 cash and 67,223 shares of JDE common stock (par value $1.00 per share). At the time of the acquisition, BMI's book value was

$2,281,548.

On January I , JDE stock had a market value of $14.90 per share and there was no control premium in this transaction. Any unidentifiable consideration transferred over book value is assigned to goodwill. BMI had the following balances on January I, 2011.

	Book Value	Fair Value
Land	228,558	342,837
Buildings (seven-year remaining life)	363,004	457 ,116
Equipment (five-year remaining life)	497,450	443 ,672

For internal reporting purposes, JDE employed the equity method to account for this investment.

Required: Prepare a consolidation worksheet for this business combination. Assume goodwill has been reviewed and there is no goodwill impairment.