Padre, Inc, buys 80 percent of the outstanding common stock of Sierra Corporation on January 1, 2021, for $802,720 cash. At the acquisition date, Sierra's total fair value, including the noncontrolling interest, was assessed at $1,003,400 although Sierra's book value was only $690,000. Also, several individual items on Sierra's financial records had fair values that differed from their book values as follows: Land Buildings and equipment (10-year remaining life) Copyright (20-year remaining life) Notes payable (due in 8 years) Book Value $ 65,090 287,000 122,000 (176,000) Fair Value $ 299,000 263,000 216,000 (157,600) 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. $ Sierra (684,900) 432,000 11,600 6,100 9,200 $ Padre $(1,394,980) 774,000 274,000 @ 52,100 (177, 120) $ (472,000) $(1,275,000) (472,000) 260,000 $(1,487,000) 856,160 927,840 360,000 909,000 Revenues Cost of goods sold Depreciation expense Amortization expense Interest expense Equity in income of Sierra Net income Retained earnings, 1/1/21 Net income Dividends declared Retained earnings, 12/31/21 Current assets Investment in Sierra Land Buildings and equipment (net) Copyright $ (226,000) (530,000) (226,000 65,000 (691, 000) 764,700 0 65,000 275,400 115,900 $ Homework 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 $(1,394,980) 774,000 274,000 Revenues Cost of goods sold Depreciation expense Amortization expense Interest expense Equity in income of Sierra Net income Retained earnings, 1/1/21 Net income Dividends declared Retained earnings, 12/31/21 Current assets Investment in Sierra Buildings and equipment (net) Copyright Total assets Accounts payable Notes payable Common stock Additional paid-in capital Retained earnings (above) Total liabilities and equities 52,100 (177,120) $ (472,000) $(1,275,000) (472,000) 260,000 $(1,487,000) $ 856,160 927,840 360,000 909,000 Sierra $ (684,900) 432,000 11,600 6,100 9,209 $ (226,000) $ (530,000) (226,000) 65,000 $ (691,000) $ 764,700 65,000 275,400 115,900 $ 1,221,000 $ (194,000) (176,000) (100,000) (60,000) (691,000) $ (1,221,000) Land $ 3,653,000 $ (275,000) (541,000) (300,000) (450,000) (1,487,000) $ (3,053,000) At year-end, there were no intra-entity receivables or payables. Prepare a worksheet to consolidate the financial statements of these two companies. (For accounts where multiple consolidation Prepare a worksheet to consolidate the financial statements of these two companies. (For accounts where multiple consolidation entries are required, combine all debit entries into one amount and enter this amount in the debit column of the worksheet. Similarly, combine all credit entries into one amount and enter this amount in the credit column of the worksheet. Input all amounts as positive values.) VIIM Sier Padre $(1,394,980) $ (684,900) 774,000 432,000 274,000 11,600 0 6,100 52,100 9,200 (177,120) 0 $ (472,000) $ (226,000) Mecounts Revenues Cost of goods sold Depreciation expense Amortization expense Interest expense Equity in income of Sierra Separate company net income Consolidated net income Ni to noncontrolling interest NI to Padre Company Retained earnings, 1/1/21 Net income Dividends declared Retained earnings, 12/31/21 Current assets S (1,275,000) $ (530,000) (472,000) (226,000) 260,000 65,000 $(1.487,000) $ (691,000) S 856,160 S 764,700 Prev 8 of 10 Next > . . MILLER 52,100 9,200 (177,120) 0 $ (472,000) $ (226,000) Interest expense Equity in incorne of Sierra Separate company net income Consolidated net income NI to noncontrolling interest Ni to Padre Company Retained eamings, 1/1/21 Net income Dividends declared Retained earnings, 12/31/21 Current assets Investment in Sierra Land Buildings and equipment (net) Copyright Total assets Accounts payable Notes payable NCI in Sierra 1/1 NCI in Sierra 12/31 Common stock Additional paid-in capital Retained earnings (above) Total liabilities and equities $(1275,000) $ (530,000) (472,000) (226,000) 260,000 65,000 $(1,487,000) $ (691,000) $ 856,160 $ 764,700 927,840 0 360,000 65,000 909,000 275,400 0 115,900 $ 3,053,000 $1,221,000 $ (275,000) $ (194,000) (541,000) (176,000) $ (300,000) (100,000) (450,000) (60,000) (1,487,000) (691,000) $ (3,053,000) $(1,221,000) $ 0 $ 0