5 Padre, Inc., buys 80 percent of the outstanding common stock of Sierra Corporation on January 1, 2018, for $737,280 cash. At the acquisition date, Sierra's total fair value, including the noncontrolling interest, was assessed at $921,600 although Sierra's book value was only $680,000. Also, several individual items on Sierra's financial records had fair values that differed from their book values as follows: 10 points Book Value Fair Value Land Buildings and equipment (10-year remaining life) Copyright (20-year remaining 1ife) Notes payable (due in 8 years) $ 60,100 228,100 302,000 253,000 352,000 147,000 eBook (151,000) (133,400) 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, 2018, for both companies. Print Padre Sierra $ (1,635,200) (663,800) Revenues Cost of goods sold Depreciation expense Amortization expense Interest expense Equity in income of Sierra 795, 000 358,000 479,000 13,300 7,350 8,150 49,000 (122,800) $ (556,000) (156, 000) Net income Retained earninga, 1/1/18 Net income Dividends declared (1,392,500) (556,000) (520,000) (156,000) 65,000 $ (1,688,500) (611,000) 260,000 Retained earnings, 12/31/18 Current assets Investment in Sierra Land Buildings and equipment (net) Copyright 1, 081, 420 808,080 385,000 911,000 570,550 60,100 338,700 139,650 1,109,000 Total assets $ 3,185,500 Accounts payable Notes payable Common stock Additional paid-in capital Retained earnings (above) (187,000) (151,000) (100,000) (60,000) (611,000) $ (3,185,500) (1,109,000) (227,000) (520,000) (300,000) 450,000) 1,688,500) Total liabilities and equities At year-end, there were no intra-entity receivables or payables. Using the acquisition method, prepare the worksheet to consolidate these two companies. (For accounts where multiple consolidation entries are required, combine all debit entries into one amount and enter this amount in the debit column of the worksheet. Similarly, combine all credit entries into one amount and enter this amount in the credit column of the worksheet. Amounts in the Debit and Credit columns should be entered as positive. Negative amounts for the Noncontrolling Interest and Consolidated Totals columns should be entered with a minus sign.)