Green Mountain Coffee Roasters reported net income for the year ended September 26, 2009 of $54.439 million. There were 120,370,659 common shares outstanding. On November 13, 2009, Green Mountain acquired all the outstanding shares of Timothy’s Coffee of the World for $155.74 million cash. The purchase price was allocated as follows ($ in thousands):

The identifiable intangible assets included $83.2 million for customer relationships with an estimated life of 16 years, $8.9 million for Timothy’s trade name with an estimated life of 11 years, and $6.2 million for supply agreements with an estimated life of 11 years. The valuation of fixed assets to fair value was not significant.

Required:
A. Prepare the consolidation worksheet entry(ies) to eliminate the investment account.
B. If Timothy’s Coffee generated $15 million of income (not considering the acquisition) in 2010, will the acquisition of Timothy’s Coffee be accretive or dilutive to the earnings per share of GreenMountain?

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$155,740 Purchase price Allocated to Accounts receivable Inventory Other current assets Fixed assets Identifiable intangibles Accounts payable Accrued expenses Deferred taxes 8,732 6,911 83 7,827 98,300 (6,852) (1,284) (27,274) Total Excess 86,443 69,297