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1. prepare the consolidation worksheet entries for December 31, 2021; 2. prepare the consolidation worksheet entries for December 31, 2022. Assuming during 2022, Sierra reports
1. prepare the consolidation worksheet entries for December 31, 2021; 2. prepare the consolidation worksheet entries for December 31, 2022. Assuming during 2022, Sierra reports net income of 200,000 and paid dividends of 70,000. USE THE FORMAT BELOW BUT DO NOT USE THE NUMBERS BECAUSE THEY ARE NOT CORRECT. THIS IS JUST TO GIVE YOU THE WORKSHEET FORMAT ANS ACCOUNT NAMES.
Padre, Inc., buys 80 percent of the cutstanding common stock of Sierra Corporation on January 1, 2021, for $802,720 cash. At the aoquisition date, Sierra's total fair vahe, including the noncontrolling interest, was assessed at \$1,003,400 although Sierra"s book: value was caly $690,000. Also, several individual items on Sierra's financial records had fair values that differed from their book values as follows: For internal reporting purposes, Padre, Inc., employs the equity method to account for this investment. The following account balances are for the year ending December 31, 2021, for both companies. Page 20Step by Step Solution
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