Ch 4 act questions only

Ch 4 act questions only - 4-1 On January 1 2009 John Doe...

Info iconThis preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: 4-1 On January 1, 2009, John Doe Enterprises (JDE) bought a 55% interest in Bubba Manufacturing, Inc. (BMI). 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, BMI'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. BMI had the following balances on January 1, 2009. For internal reporting purposes, JDE employed the equity method to account for this investment. Prepare a schedule to determine goodwill and the amortization and allocation amounts. ...
View Full Document

This note was uploaded on 02/23/2010 for the course ACCT 20842 taught by Professor Henry during the Spring '10 term at CSU San Bernardino.

Ask a homework question - tutors are online