On January 1, 2020, John Doe Enterprises (JDE) acquired a 55% interest in Tractors-R-Us Manufacturing, Inc. (TMI). 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, TMI'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. TMI had the following balances on January 1, 2020. Land Buildings (seven-year remaining life) Equipment (five-year remaining life) Book Value Fair Value $1,700,000 $2,550,000 2,700,000 3,400,000 3,700,000 3,300,000 For internal reporting purposes, JDE employed the equity method to account for this investment. 1. Prepare a schedule to determine goodwill, and the amortization and allocation amounts. The following account balances are for the year ending December 31, 2020 for both companies. John Doe Enterprises Tractors-R-Us Manufacturing Revenues Expenses $(298,000,000) $(103,750,000) 271,000,000 95,800,000 0 $(31,361,500) $ 7,950,000) Equity in income-Tractors-R-UsManufacturing (4,361,500) Net income Retained earnings, January 1, 2020 Net income (above) Dividends paid Retained earnings, December 31, 2020 Current Assets Investment in Tractor Manufacturing Land Buildings Equipment (net) Total assets Accounts payable Notes payable Common stock Additional paid-in capital Retained earnings, Dec. 31, 2020 (above) Total liabilities and stockholders' equity $( 2,500,000) $( 100,000) (31,361,500) (7,950,000) 5.000.000 $(28,861,500) 3,000,000 SC 5.050.000) $ 30,500,000 $ 20,800,000 13,161,500 1,500,000 5,600,000 3.100.000 1,700,000 2,360,000 2,960,000 $ 53,861,500 $ 27,820,000 $( 3,100,000) $ (4,900,000) ( 1,000,000) (2,900,000) ( 6,000,000) (19,000,000) (10,870,000) (28,861,500) 5,050,000) $(53,861,500) SC 27,820.000) 2. Prepare the consolidating entries and the consolidation worksheet for this business combination. Assume goodwill has been reviewed and there is no goodwill impairment.