Padre, Inc., buys $80$ percent of the outstanding common stock of Sierra Corporation on January $1,2021,$ for $$760,960$ cash. At the acquisition date, Sierra$$s total fair value, including the noncontrolling interest, was assessed at $$951,200$ although Sierra$$s book value was only $$619,000.$ Also, several individual items on Sierra$$s financial records had fair values that differed from their book values as follows:

Book Value Fair Value

Land $ $67,400$ $ $290,400$

Buildings and equipment $(10-$year remaining life$)335,000299,000$

Copyright $(20-$year remaining life$)197,000323,000$

Notes payable $($due in $8$ years$)(165,000)(145,800)$

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.

Padre Sierra

Revenues $ $(1,465,280)$ $ $(636,600)$

Cost of goods sold $788,000417,000$

Depreciation expense $308,00013,000$

Amortization expense $09,850$

Interest expense $50,2006,750$

Equity in income of Sierra $(147,920)0$

Net income $ $(467,000)$ $ $(190,000)$

Retained earnings, $1/1/21$ $ $(1,402,500)$ $ $(459,000)$

Net income $(467,000)(190,000)$

Dividends declared $260,00065,000$

Retained earnings, $12/31/21$ $ $(1,609,500)$ $ $(584,000)$

Current assets $ $939,620$ $ $494,450$

Investment in Sierra $856,8800$

Land $309,00067,400$

Buildings and equipment $($net$)976,000322,000$

Copyright $0187,150$

Total assets $ $3,081,500$ $ $1,071,000$

Accounts payable $ $(200,000)$ $ $(162,000)$

Notes payable $(522,000)(165,000)$

Common stock $(300,000)(100,000)$

Additional paid$-$in capital $(450,000)(60,000)$

Retained earnings $($above$)(1,609,500)(584,000)$

Total liabilities and equities $ $(3,081,500)$ $ $(1,071,000)$

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

Prepare a worksheet to consolidate the financial statements of these two companies.