On January 1, 2011, John Doe Enterprises (JDE) bought 55% interest in Bubba Manufacturing. JDE paid for the transaction with @2441,076 cash and 406,846 shares of JDE common stock (par value $1.00 per share). At the time of the acquisition BMI's book value was $13,808,351.
On Jan 1, JDE stock had a market value of $14.90 per share and there was no control premium. BMI balances on Jan 1, 2011
Land BV 1383276 FV 2074914
Buildings 7 yr remaining life BV 2196968 FV 2766552
Equip 5 yr remaining life BV 3010660 FV 2685183
Using the equity method to account for transaction