Padre, Inc., buys 80 percent of the outstanding common stock of Sierra Corporation on January 1, 2018, for $771,200 cash. At the acquisition date, Sierra's total fair value, including the noncontrolling interest, was assessed at $964,000 although Sierra's book value was only $614,000. 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 $ 65,900 345,000 143,000 (211,690) Fair Value $ 280,900 306, 299,000 (193, eee) 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 $ $ Padre (1,488,320) 785, eee 295, eee Revenues Cost of goods sold Depreciation expense Amortization expense Interest expense Equity in income of Sierra Net income Sierra (589,800) 415, eee 11,180 7,150 7,550 48,689 (114,289) (554,000) $ $ (149, eee) $ $ $ $ (149,000) (454,000) (149,000) 65,000 (538,000) 566, 350 $ Net income Retained earnings, 1/1/18 Net income Dividends declared Retained earnings, 12/31/18 Current assets Investment in Sierra Land Buildings and equipment (net) Copyright Total assets Accounts payable Notes payable Common stock Additional paid-in capital Retained earnings (above) Total liabilities and equities (554,000) (1,372,500) (554,000) 260,000 (1,666,500) 953,020 833,480 363,000 971,000 $ 3,120,500 $ (198,000) (506,000) (300,000) (450,000) (1,666, See) $ (3,120, see) 65,900 333,900 135,850 $ 1,102,000 $ (193,000) (211,000) (100,000) (60,000) (538, eee) $ (1,102,eee) At year-end, there were no intra-entity receivables or payables. Using the acquisition method, prepare the worksheet to consolidate these two companies. (For accounts where multiple consolidation entries are required, combine all debit entries into one amount and enter this amount in tffe debit column of the worksheet. Similarly, combine all credit entries into one amount and enter this amount in the credit column of the worksheet. Amounts in the Debit and Credit columns should be entered as positive. Negative amounts for the Noncontrolling Interest and Consolidated Totals columns should be entered with a minus sign.)