Padre, Inc., buys 80 percent of the outstanding common stock of Sierra Corporation on January 1, 2021, for $786,720 cash. At the acquisition date, Sierra's total fair value, including the noncontrolling interest, was assessed at $983,400 although Sierra's book value was only $648,000. Also, several individual items on Sierra's financial records had fair values that differed from their book values as follows: Book Value Fair Value Land $ 66,900 $ 329,900 Buildings and equipment (10-year remaining life) 276,000 248,000 Copyright (20-year remaining life) Notes payable (due in 8 years) 199,000 (175,000) 285,000 (160,600) 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. Padre Sierra 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 Total assets Accounts payable Notes payable Common stock Additional paid-in capital Retained earnings (above) Total liabilities and equities $ (1,487,240) 744,000 $ (604,800) 416,000 265,000 18,000 0 9,950 7,850 0 45,000 (119,760) $ (553,000) $ (153,000) $(1,350,000) (553,000) $ (488,000) (153,000) 65,000 $ (576,000) 260,000 $(1,643,000) $ 939,520 $ 632,050 854,480 0 366,000 66,900 960,000 258,000 0 189,050 $ 3,120,000 $ 1,146,000 $ (237,000) $ (235,000) (490,000) (300,000) (175,000) (100,000) (60,000) (450,000) (1,643,000) $(3,120,000) (576,000) $(1,146,000) 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 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.) Accounts PADRE INC., AND SIERRA CORPORATION Consolidated Worksheet For Year Ending December 31, 2021 Padre Sierra 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 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 $ (1,487,240) $ (604,800)| 744,000 416,000 265,000 18,000 0 9,950 7,850 0 45,000 (119,760) $ (553,000) $ (153,000)| $ (1,350,000) $ (488,000) (553,000) 260,000 (153,000) 65,000 $ (1,643,000) $ (576,000) $ 939,520 $ 632,050 854,480 0 366,000 66,900 960,000 258,000 0 189,050 $ 3,120,000 $1,146,000 $ (237,000) $ (235,000) (490,000) (175,000) (300,000) (100,000) (60,000) (576,000) (450,000) (1,643,000) $ (3,120,000) $(1,146,000) Consolidation Entries Debit Credit Noncontrolling Interest Consolidated Totals