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.)

Padre, Inc., buys 80 percent of the outstanding common stock of Sierra Corporation on January 1, 2021, for $751,680 cash. At the acquisition date, Sierra's total fair value, including the noncontrolling interest, was assessed at $939,600 although Sierra's book value was only $683,000. 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 $ 68,200 350,000 105,000 (205,000) Fair Value $ 268, 200 327,000 175,000 (195,400) 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. 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 Buildings and equipment (net) Copyright Total assets Accounts payable Notes payable Common stock Additional paid-in capital Retained earnings (above) Total liabilities and equities Padre $(1,431,820) 764,000 293,000 0 48,500 (155, 680) $ (482,000) $(1,467,500) (482,000) 260,000 $(1,689,500) $ 1,018, 140 855,360 339,000 956,000 0 $ 3, 168,500 $ (204,000) (525,000) (300,000) (450,000) (1,689,500) $(3,168,500) Sierra $ (635,250) 414,000 12,600 5,250 6,400 0 $ (197,000) $ (523,000) (197,000) 65,000 $ (655, 000) $ 685,650 0 68,200 337,400 99,750 $ 1,191,000 $ (171,000) (205,000) (100,000) (60,000) (655,000) $(1,191,000) At year-end, there were no intra-entity receivables or payables. For Year Ending December 31, 2021 Consolidation Entries Accounts Padre Sierra Debit Credit Noncontrolling Interest Consolidated Totals Revenues $(1,431,820) $ (635,250) 764,000 414,000 293,000 12,600 0 5,250 48,500 6,400 (155,680) 0 $ (482,000) $ (197,000) Cost of goods sold Depreciation expense Amortization expense Interest expense Equity in income of Sierra Separate company net income Consolidated net income NI to noncontrolling interest Nl to Padre Company Retained earnings, 1/1/21 Net income Dividends declared Retained earnings, 12/31/21 Current assets Investment in Sierra Land $(1,467,500) $ (523,000) (482,000) (197,000) 260,000 65,000 $(1,689,500) $ (655,000) $ 1,018, 140 $ 685,650 855,360 0 339,000 68,200 956,000 337,400 0 99,750 $ 3,168,500 $ 1,191,000 $ (204,000) $ (171,000) (525,000) (205,000) Buildings and equipment (net) Copyright Total assets Accounts payable Notes payable NCI in Sierra 1/1 NCI in Sierra 12/31 Common stock Additional paid-in capital Retained earnings (above) Total liabilities and equities $ 0 (300,000) (100,000) (450,000) (60,000) (1,689,500) (655,000) $ (3,168,500) $(1,191,000) $ 0 $ 0 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.)