At year end, there were no intra-entity receivables or payables. Prepare a worksheet to consolidate the financial statements of these two companies.

uate, what Is the impact on goodwill? Pddre, Inc. , buys 80 percent of the outstanding common stock of Sierra Corporation on January 1,2018, 20 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. Also, several individual tems 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 Copyright (20-year remaining life).. For internal reporting purp 287,000 122,000 (176,000) 263,000 216,000 (157,600) oses, Padre, Inc., employs the equity method to account for this invest- ent. The following account balances are for the year ending December 31, 2018, for both Padre Sierra $(1,394,980) $ (684,900) 432,000 11,600 6,100 9,200 774,000 274,000 0 52,100 Cost of goods sold Amortization expense Interest expense . . .. (177,120)- $ (472,000) (226,000 continued