On January 1, 2011, John Doe Enterprises (JDE) Acquired a 55

On January 1, 2011, John Doe Enterprises (JDE) acquired 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, 2011. $\begin{array}{lrr}&\text { Book } & \text { Fair } \\&\text { Value } & \text { Value } \\\text { Land } & \$ 1,700,000 & \$ 2,550,000 \\\text { Buildings (seven-year remaining life) } & 2,700,000 & 3,400,000 \\\text { Equipment (five-year remaining life) } & 3,700,000 & 3,300,000\end{array}$ For internal reporting purposes, JDE employed the equity method to account for this investment.
-McLaughlin, Inc. acquires 70 percent of Ellis Corporation on September 1, 2010, and an additional 10 percent on November 1, 2011. Annual amortization of $8,400 attributed to the controlling interest relates to the first acquisition. Ellis reports the following figures for 2011: $$\begin{array} { l r } \text { Revenues } & \$ 500,000 \\\text { Expenses } & 350,000 \\\text { Retained earnings, 1/1/11 } & 3,500,000 \\\text { Dividends paid } & 40,000 \\\text { Common stock } & 400,000\end{array}$$
Without regard for this investment, McLaughlin earns $480,000 in net income ($840,000 revenues less $360,000 expenses; incurred evenly through the year) during 2011.
Required: Prepare a schedule of consolidated net income and apportionment to noncontrolling and controlling interests for 2011.