Padre , Inc. , buy's 80 percent of the outstanding common stock of Sierra Corporation on January 1, 2018, for $ 790. 560 cash . At the acquisition date , Sierra's total fair value , Including the noncontrolling Interest , was assessed at $968, 200 although Sierra's book value was only $562, 000. Also , Several Individual Items on Slamra's financial records had fair values that differed from their book values as follows : BOOK VALUE Fair Value Land ` $1 , 000 $ 295 , 000 Buildings and Equipment ( 10 - year regaining life ; 2$4, 000 245 , 00 0 Copyright 120 - year remaining life ! 103 , 000 221 , 000 NOTES Payable [due in & PEACE !` (101 , 0001 172 , BODY 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, 2018 , for both companies . FadTE Sierra REVENUEE* $ 1 1 , 561 , 7001 1 614 , 0501 COST OF goods sold $40, 000 Depreciation EXPENSE 310 , 000 17 , BOO Amortization EXPENSE 5 , 150 INTEREST EXPENSE $ 6, 900 6 , 100 Equity in incase of Sierra | 1 13 , 2001 Net income* 15 $5 , 0001 1 145, 0001 Retained earnings , I' L'LE $ 1 1 , $47 , 500 1 1502, 0001 HEt inCOLE* 15 $5 , 000 1 1 145, 0001 Dividends declared 250 , 000 65 , 000 Retained Earnings , 12/31 /'10 $ 1 1 , 132 , 5001 1582 , 0001 CURRENT BREEZE $ 1 , 207 , 740 $`$ , $50 ITIVEELLENL in GLEEES $51 , 750 O Land 311 , 000 $ 1 , 000 Buildings and Equipment Inst ! LEE , 200 COPYright $7 , 650 Total BEBELE $ 3 , 274 , 500 $ 1 , 124, 000 ACCOUNTS PAYABLE 1203 , 00 0 1 HOLES Payable 505 , 000 1 184 , 000 Canzon BLOCK 300 , 000^ 100 , 0001 Additional paid - in capital 1$50 , 000 1 160 , 0001 Retained Earnings ( above ) $1 . 732 , 50 0 1 15.82 , 0001 Total Liabilities and Equities $ 13 , 274 , 50 0 1 $ 1 1 , 124 , 0001 At Year- End, there were no Intra_entity receivables or payables .PADRE ING.. AND SIERRA CORPORATION Consolidated Worksheet For Year Ending December 31, 201.8 Consolidation Entries ABLOUNGE Padre BIETTE Credit Mancontrolling Loans alldated Interest Totals. REVENUES "(1 . 56 1 . 790 ; $ 161 4, 0501 Cost of goods sold $71, 00 0 $40, 000 Chapradiation EXPENSE $10, 000 1 7. BOO Amortization EXRENEE 5, 150 Interest EXPENSE 18. 900 6. 100 Equity in income of Sierra* $1 13, 20 01 SeparatE company' net income* $ 1545,0901| $ 1 145,0001} Consolidated net income* All to noncontrolling interest MI to Padre Company FEtanEd Earnings 1/ 4 "1 1 . 4 47 . 50.01\\\\ $ 1502 , 00 01 Net income labOVE! \\545, 0001 145,000 ) Dividends declared 6.5, 000| FEtainEd Earnings 1 2131 1 1 . 732.50 01/ $ 15.82,00 01 5 _urant BEGETS $ 1. 207, 740| EQE. GSO Investment in Sierra* $51. TED and 31 1 , 00.0 Buildings and Equipment Inst ! Copyright Total BEGETS $ 3. 274, 50 0 $ 1 . 124,000 ACCOUNTS REVELLE (203, 00 01| Notes Payable* 1 1.84, 00 01 HEY in Sierra 1 /1 MEL in Sierra 12/31 Common Stock \\300, 00 01 Additional paid - in capital `450, 00 01 FRetained Earnings 12/31 / stave*! | 1. 732.50 01| \\5.02, 00 01 5 Total liabilities and stockholders' Equity* 13 27: 50 01 1 1. 124,0001
