A.What is the journal entry to record Pullman's acquisition of Sierra Company.

B.Schedule required showing the determination of goodwill, if applicable, for this acquisition.

C.Prepare a schedule showing the allocation of any related purchase price adjustments to the acquired company's assets, including the related annual amortizations, if applicable.

D.For 12/31/20x1, prepare consolidation worksheet for this transaction.Assume that no goodwill impairment adjustment is required. (For the format, consider the Exhibit 4.6 on page 167 & use Excel)

Pullman, Inc. acquired a controlling interest in Sierra Company on 1/1/20x1. At that time, the book value of Sierra Company's net assets was $16,970,000, including the following: Fair Value Book Value Remaining Life Buildings $2,700,000 $3,400,000 7 years Equipment 3,700,000 3,300,000 5 years Land 1,700,000 2,550,000 indefinite In acquiring their controlling interest, Pullman paid $10,450,000 cash in exchange for 55% of the outstanding voting common stock of Sierra. At the time of the acquisition, the fair value of 100% of Sierra's outstanding common stock was $19,000,000. Pullman did not pay a control premium to acquire their 55% controlling interest. Any consideration paid in excess of the fair value of net assets acquired is assigned to goodwill. The account balances for Pullman, Inc. and Sierra Company at 12/31/20x1 are as follows: Pullman, Inc. Sierra Company Revenues (298,000,000) (103,750,000) Expenses 271,000,000 95,800,000 Equity in income of Sierra Company 4,361,500) Net income (31,361,500) 7,950,000) Retained earnings, January 1, 20x1 (2,500,000) 100,000) Net income (above (31,361,500) (7,950,000) paid 5,000,000 3,000,000 Retained earnings, December 31, 20x1 28,861,500) 5,050,000) Current Assets 30,500,000 20,800,000 Investment in Sierra Company 13,161,500 Land 1,500,000 1,700,000 Buildings 5,600,000 2,360,000 Equipment (net) 3,100,000 2,960,000 Total assets 53,861,500 27,820,000 Accounts payable (3,100,000) (4,900,000) Notes payable (1,000,000) Common stock (2,900,000) 6,000,000) Additional paid-in capital 19,000,000) (10,870,000) Retained earnings, Dec. 31, 20x1 (above) 28,861,500) 5,050,000) Total liabilities and stockholders' equity (53,861,500) (27,820,000)