a) Provide all consolidation JOURNAL ENTRIES for the previous problem, and all related analysis to determine the amounts for these

consolidation entries. Show all your calculations.

b) Provide all related analysis to determine the Non-Controlling Interest amounts. Show all your calculations.

Padre, Inc. buys 80 percent of the outstanding common stock of Sierra Corporation on January 1, 2021. for $778.080 cash. At the acquisition date. Sierra's total fair value, including the noncontrolling interest, was assessed at $972,600 although Sierra's book value was only $604,000. Also, several individual items on Sierra's financial records had fair values that differed from their book values as follows: Land Buildings and equipment (10-year remaining life) Copyright (20-year remaining life) Notes payable (due in 8 years) Book Value $ 66,700 332,000 129,000 (148,000) Fair Value $ 23,700 318,000 219.000 (132,400) 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, 2021. for both companies Padre $(1,488,840 790,000 294,000 Revenues Cost of goods sold Depreciation expense Amortization bene Interest expense Equity in ince of Sierra Not Income Metalned earnings, 1/2/21 that income Sierra 5 (605,50) 10, 13.500 5.450 5,900 48.000 (155-160 $(512,000) 5(1,500,000 (5123000) $ 200,000) (44,000 (200,000 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 Padre $(1,488,540) 790,000 294,000 Sierra $ (605,85e) 380,000 1,500 6,450 5,900 Revenues Cost of goods sold Depreciation expense Amortization expense Interest expense Equity in income of Sierra Net income Retained earnings, 1/1/21 Net income Dividends declared Retained earnings, 12/31/21 Current assets Investment in Sierra Land Duildings and equipment (net) Copyright Total assets Accounts payable hot payable Common stock additional paldin Capital Hetained earnings (above) Total liabilities and wouities 48,000 (155, 160 $(512,000) $(1,500,000 (512.000) 260,000 $(1,752,000 $1,073,750 381.240 388,000 925,000 $ (200,000) 5 (444,000 (200,000) 65,000 3 (579,000) $ 619.250 $ 3,268,000 5 (266,000) (500,000) (300,000) (450.000) (1,7) SC260,000) 66,00 10,500 122,550 $ 1,127,000 $ (240,000 (14,000 (100,000) (60,000) 79.000 $(1,123,000 At year-end, there were no intra-entity receivables or payables. Prepare a worksheet to consolidate the financial statements of 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. Input all amounts as positive values.) Accounts Noncontrolling Interest Revenues Cost of goods sold Depreciation expense Amortization expense Interest expense Equity in income of Sierra Soparate company not income Consolidated net income PADRE INC., AND SIERRA CORPORATION Consolidated Worksheet For Year Ending December 31, 2021 Consolidation Entries Padre Sierra Debit Credit $11.488 840) $ (605,850) 790.000 380 000 290 000 13 500 1400 0 6.450 5.500 48.000 5.900 1.950 (155 160) 0 155 160 $ (512.000) $200.000) Consolidated Totals $ (2094,690) 1.170.000 306100 11 950 55,850 0 D (550,7901 $ (38,790) 444,000 $ (550.790) 38,790 $ (512,000) S (1.500.000) (512,000) 260.000 S (1.752.000) $ 1693010 52,000 13,000 933,240 Consolidated net income Ni to noncontrolling interest NI to Padre Company Retained earnings, 1/1/21 Net income Dividends declared Retained earnings. 12/31/21 Current assets Investment in Siorra Land Buildings and equipment (not) Copyright Total assets Accounts payable Notes payable NC in Sierra 1/1 INCI in Sierra 12/31 Common stock Additional paid in capital Retained earnings (above) $(1,500,000) S (444,000) (512.000) (200,000) 260.000 65,000 $(1.752,000) $ (579,000) $ 1,073,760 $ 619.250 881,240 0 388,000 66,700 925,000 318,500 0 122,550 $ 3.268.000 $ 1 127 000 S. (266,000) $ (240.000) (500 000) (148.000 52.000 257,000 1.400 110,000 14.000 5.500 711 700 1.230.900 227 050 3 802 660 (506,000) 1634 350) $ 15.600 1.950 194 520 (194 520) 1240 310) S (300 000) (450.000 (1752.000) (100.000) (60.000) (579.000) 100 000 00.000 240 310 (300 000) (450 000) (1.752000) S 1.693.010 933,240 0 $ 1,073,760 $ 619 250 881,240 0 388 000 66,700 925,000 318,500 0 122,550 $ 3,268,000 $ 1,127,000 $ (266 000) $ (240,000) (500,000) (148,000) 52,000 257.000 1.400 110,000 14,000 5.500 Current assets Investment in Sierra Land Buildings and equipment (net) Copyright Total assets Accounts payable Notes payable NC in Sierra 1/1 NCI in Sierra 12/31 Common stock Additional paid in capital Retained earnings (above) Total abilities and equities 711,700 1,230,900 227 050 3,862 660 (506,000) (634 350) $ $ 15,600 1,950 194.520 (194,520) (246,310) s 246,310 (300,000) (100,000) 100,000 (450,000) (60,000) 60,000 (1,752,000) (579,000) $ (3.268,000) S(1.127.000) $ 1,202,610 S 1,202,610 (300.000 (450.000) (1.752,000) $ (3 862 860)