Padre, Inc, buys $80$ percent of the outstanding common stock of Slerra Corporation on January $1,2021,$ for $$757,280$ cash. At the

acquisition date, Slerra's total fair value, Including the noncontrolling interest, was assessed at $$946,600$ although Sierra's book value

was only $$696,000.$ Also, several Individual Items on Slerra's financlal records had falr values that differed from their book values as

follows:

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 companles.

At year$-$end, there were no intra$-$entity recelvables or payables.