On January 1, 2020, John Doe Enterprises (JDE) bought a 75% interest in Bubba Manufacturing, Inc. (BMI). JDE paid for the transaction with $615,690 cash and 225,753 shares of JDE common stock (par value $1.00 per share). At the time of the acquisition, BMI's book value was$6,965,506.

On January 1, JDE stock had a market value of $25.85 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 1, 2020.

Book Value Fair Value

Land 615,690 1,333,995

Buildings (seven-year remaining life) 820,920 1,580,271

Equipment (five-year remaining life) 1,436,610 1,354,518

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.

Consolidation Worksheet For the year ended 12/31/2018 Consolidation Entries Debit Credit Non- controlling Interest Consolidated Totals John Doe Ent. (122,317,071) 111,234,652 (2.378,322) (13,460,741) Bubba MFG. (42,585,222) 39,322,065 Accounts Revenues Expenses Equity in income of Bubba, MFG. Separate company net income Consolidated net income (3,263,157) Noncontrolling interest in Bubba's income Net Income to Controlling interest Retained earnings, January 1, 2018 Net income Dividends paid Retained earnings, December 31, 2018 (1,026,150) (13,460,742) 2,052,300 (12,434,592) (41,046) (3,263,157 1,231,380 (2,072,823) 8,537,567 Current assets Investment in Bubba 10,603,207 7,906,192 Land Buildings (net) Equipment (net) Goodwill Total assets 615,690 2.298,576 1,272,426 697,782 968,686 1,214,962 22,696,091 11,418,997 (1,272,426) Current Liabilities Notes payable NCI in Bubba 1/1 (2,011,254) (410,460) NCI in Bubba 12/31 Common stock (1,190,334) (2,462 760) Additional paid-in capital (7.798,739) (4,461,700) Retained earnings, December 31, 2018 (12,434,592) (2,072,823) Total liabilities and stockholders' equity (22,696,091) (11,418,997)