On January 1, 2020, John Doe Enterprises (JDE) acquired a 55% interest in Bubba Manufacturing, Inc. (BMI). JDE paid for the transaction with $3,000 cash and 500 shares of JDE common stock (par value $1.00 per share). At the time of the acquisition, BMI's book value was $16,970. On January 1, JDE stock had a market value of $14.90 per share and there was no control premium in this transaction. BMI had the following balances on January 1, 2020. Book Fair Value Value Land $1,700 $2,550 Buildings (seven-year remaining life) 2,700 3,400 Equipment (five-year remaining life) 3,700 3,300 For internal reporting purposes, JDE employed the equity method to account for this investment. At December 31, 2020, BMI's Accounts Payable included $1,000 owed to JDE. JDE's and BMI's December 31, 2020 financial statements are attached. Required: a) Calculate, allocate and amortize excess at January 1, 2020; b) Calculate 2020 JDE's share of BMI's earnings (Equity in Income of BMI); c) Calculate 2020 NCI share of BMI's earnings; d) Calculate BMI's 2020 dividends distribution for JDE and NCI; e) Write all the consolidation entries for 2020; f) After the consolidation entries, determine the 12/31/2020 consolidated balances for the selected accounts (you have to show me how you get those amounts): 1. Dividends; 2. Buildings; 3. Retained Earnings, December 31 4. NCI in BMI, 12/31/2020. WE W.7683 g) Explain how we deal with the cost of Goodwill, if there is any, annually (no numbers). NO! Do (a) through (e) and (g) in your blue book; for (f), use working paper attached if you like The following balances are for the year ending December 31, 2020 fer both companies. (Some are missing which requires you to calculate if you need to for the solution.) JDE BMI Adjustments Now on Consolidation Totals 1750) 66780 Revenues Expenses Equity in income of BMI Net income Retained earnings, 1/1/2020 Net income (above) Dividends Retained earnings, 12/31/2020 S(298,000) 271,000 $(103,750) 95,800 W 0 SS 7.950) $ 2,500) $( 100) 57,950) 5,000 3,000 1650 1350 SCS03 ) $ 5,050) Current Assets Investment in BMI Land $ 20,800 13,161.5 1,500 1,700 Buildings 5,600 2,360 750 100 Equipment (net) 3,100 Total assets S233 2.960 $27,820 Accounts payable $3,100) $ (4,900) Notes payable Common stock Additional paid-in capital Retained earnings, 12/31, 2020 (above) Total liabilities and stockholders' equity 25,050) $33050 $27.820) 2,900) (19,000) 1,000) 6,000) (10,870)