Padre, Inc., buys 80 or $802.720 cash. At the was assessed at items on Sierra's fi percent of the outstanding common stock of Sierra Corporation on January 1.2018 e acquisition date, Sierra's total fair value, including the noncontrolling interest, 003,400 although Sierra's book value was only $690,000. Also, several individual nancial records had fair values that differed from their book values as follows: Book Value Fair Value Land Buildings and equipment $65,000 $290,000 (10-year remaining life). . 287,000 122,000 (176,000) 263.000 216,000 (157,600) Notes payable (due in 8 years) . . nternal reporting purposes, Padre, Inc., mploys the equity method to account for this invest- e following account balances are for the year ending December 31, 2018, for both companies. ment. Th Padre Sierra $(1,394,980) $ (684,900) 432,000 11,600 6,100 9,200 Revenues . . Cost of goods sold. . . 774,000 274,000 Amortization expense. Interest expense . . . Equity in income of Sierra 52,100 (177.120) Net income . $ (472,000) $ (226,000) . . continued)