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Discuss the acquisition bmis book value

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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

Reference no: EM131807985

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