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Use Chapter 4 Problem 40 on Page 206 to 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 Padre, le 30 percent of the contain common Sierra Corporation amary.2001 602.3ach At the sitios dule, Sirds tot air ituIntentar SLO0400 although ma'shoovatie was el 420.000. Also several indholm on Satarcial records had fair value that differed from their books Land Buildings and 1 year Copyrin year) Notes in un Back V 563,000 267.000 122.000 CIT6000 520000 26.000 216.000 (157.000 Forint reporting purpoids Inc. employs they had to count for this. The following count balances are for the year ending December 11, 2021. for both companies Idee 301.19401 774.000 2.000 Revens Copods sold Den pense Amortizati Instan qiyin income of Sim Not income Retained caring, 1/1/21 Nel Dondents declared Metained carnings. V NI 11 Current Investment in Land Duildings and emot) Copyright Tocats Accounts payable Natale COM Militaonal paiting Betained carnish Tartibi cutie 52.100 (1772) 5472.000 NL25.000) (472.000 10000 S42000 $ 56.10 922510 160.000 SODOO . Sierra (6843003 430,000 11.400 6.100 . 0 $22.000 5530,000) 2.000) 45 $6910 5764700 -- 65.000 275.400 115,00 $132.000 $(194000) 417 (100.000) 0.0001 91000) 122.000 51051000 (275.000 (541) 100.000) (45000 30.000 Alywn there were noticeable para wanite the financial statements of the companies 19 sty Use Chapter 4 Problem 40 on Page 206 to 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 10. Padre, Inc., buys 80 percent of the outstanding common stock of Sierra Corporation on January 1, 2021, for $802.720 cash. At the acquisition date, Sierra's total fair value, including the noncontrolling interest, was assessed at $1,003,400 although Sierra's book value was only $690.000. Abo, several individual items on Sierra's financial records had fair values that differed from their book values as follows: Book Value Fair Value Land $ 65,000 $ 290,000 Buildings and equipment (10year remaining life) 287,000 263.000 Copyright (20-year remaining life) 122,000 216.000 Notes payable (due in 8 years) (176,000) (197.600) 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 P202 Sierra Revenues Cost of poods sold Depreciation expense Amortization expense Interest expense Equity in income of Sierra Net income Retained earnings 1/1/21 Net Income Dividends declared Retained carnings, 12/31/21 $ (684,900) 432.000 11,600 6.100 9,200 Padre $(1.194.980) 774.000 274.000 0 52.100 (177.120) $ 472,000) $(1.275.000) (472.000) 260.000 1487.000 $ 56.160 S1276.000) $ (530,000) (226,000) 65,000 $ (691.000 $764,700 Current assets 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, 12/30/21 Current assets Investment in Sierra Land Buildings and equipment (net) Copyright Total assets Accounts payable Notes payable Common stock Additional pidin capital Retained earnings (above) Tocal liabilities and equirties Padre $(1.394.980) 774,000 274,000 0 52.100 (177120) $ 472.000) 5(1.275,000) (472,000) 260.000 S(1.487000) S 856,160 927,840 360,000 909.000 Sierra $ (684.900) 432,000 11,600 6,100 9.200 -0- $226,000) $ (530,000) (226,000) 65.000 5691000) $ 764.700 -0- 65.000 275,400 115.900 $ 1221.000 $ (194000) (176.000) (100,000) (60,000) (691.000) S1221.000 $3053000 $(275.000) (541.000) (300,000) (450,000) 1487.000) $2.051.000)