Padre, Inc., buys 80 percent of the outstanding common stock of Sierra Corporation on January 1, 2015, for $826,240 cash. At the acquisition date, Sierras total fair value, including the noncontrolling interest, was assessed at $1,032,800 although Sierras book value was only $645,000. Also, several individual items on Sierras financial records had fair values that differed from their book values as follows: Book Value Fair Value Land $ 66,400 $ 327,400 Buildings & Equipment (10-year remaining life) 360,000 340,000 Copyright (20-year life) 146,000 280,000 Notes Payable (due in 8 years) (196,000 ) (183,200 ) For internal reporting purposes, Padre, Inc., employs the equity method to account for this investment. At year-end, there were no intra-entity receivables or payables. Using the acquisition method, prepare the consolidating journal entries for 12/31/2017. The net income of the subsidiary for the year ended 12/31/2017 is $240,00 and $100,000 in dividends were paid in the year 2017 by the subsidiary. The equity section of the subsidiary at 1/1/2017 includes: Common Stock - $100,000; APIC - $60,000; and Retained Earnings - $900,000. Use account names exactly as used above in solutions. Use "Investment in S" "NCI - Investment in S" "Equity in Net Income" and "NCI - Equity in Net Income" "Dividends paid" For monetary amounts, do NOT use $, do use comma delineators, and brackets () for credit amounts "S" Remove subsidiary BOY equity section "A" Allocate Excess Fair Market Value "I" Remove ADJUSTED NET INCOME of subsidiary "D" Remove sub's current year dividends paid "E" Depreciation Expense related to Buildings & Equipment "E" Amortization Expense related to Copyright "E" Interest Expense related to Notes Payable