Padre, Inc., buys 80 percent of the outstanding common stock of Sierra Corporation on January 1, 2021, for $766,240 cash. At the acquisition date, Sierra's total fair value, including the noncontrolling interest, was assessed at $957,800 although Sierra's book value was only $650,000. 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 Fair Value $ 63,900 $ 254,900 356,000 181,000 326,000 317,000 (224,000) (213,200) 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 $(1,426,320) Sierra $ (693,450) 702,000 461,000 329,000 19,000 9,050 5,400 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 48,400 (155,080) $ (502,000) $ (199,000) $(1,460,000) (502,000) 260,000 $(1,702,000) $ 1,062,680 $ (490,000) (199,000) 65,000 $ (624,000) $ 619,150 869,320 347,000 63,900 928,000 337,000 171,950 $ 3,207,000 $ 1,192,000 $ (251,000) $ (184,000) (504,000) (300,000) (450,000) (1,702,000) $(3,207,000) (224,000) (100,000) (60,000) (624,000) $(1,192,000) Al 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.) Answer is not complete. PADRE INC., AND SIERRA CORPORATION Consolidated Worksheet For Year Ending December 31, 2021 Consolidation Entries Accounts Padre Sierra Debit Credit Noncontrolling Interest Consolidated Totals Revenues S (1.426,320) $ (693,450) $ (2.119,770) Cost of goods sold 702,000 461,000 1,163,000 Depreciation expense 329,000 19,000 3,000 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 (155,080) $ (502.000) 0 9,050 6,800 345,000 48,400 5,400 0 1,350 155,080 15,850 55,150 $ (199,000) $ (540,770) (38,770) 38,770 S (502,000) $ $ (490,000) 490,000 Net income Dividends declared (1.460,000) (502,000) 260,000 (199,000) 65,000 $ Retained eamings, 12/31/21 (1,702,000) $ (624,000) $ (1,460,000) 52,000 13,000 (502,000) 260,000 $ (1,702,000)) wwww v,www 5,400 1,350 0 155,080 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 48,400 (155,080) $ (502,000) $ (199,000) 3525 15,850 55,150 $ (540,770) (38,770) 38,770 0000 S Net income (1.460,000) (502,000) $ (490,000) 490,000 (199,000) Dividends declared 260,000 65,000 52,000 13,000 S Retained earnings, 12/31/21 (1,702,000) $ (624,000) Current assets $ 1,062,680 $ 619,150 $ (502,000) $ (1,460,000) (502,000) 260,000 $.702,000) $ 1,681,830 Investment in Sierra 869,320 0 52,000 ( 921,320 Land 347,000 63,900 191,000 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 928,000 337,000 3,000 0 171,950 $ 3,207,000 $ 1,192,000 $ (251,000) (504,000) $ (184,000) (224,000) 301,150- S 3,822,880 $ (435,000) (191,560) (718,550) S (51,770) (217,330) (300,000) (100,000) 100,000 (300,000) (450,000) (60,000) 60,000 (450,000) Retained earnings (above) (1,702,000) (624,000) (1,702,000) Total liabilities and equities $ $ $ S (3.207.000) (1,192,000) 1,206,030 $ 1,177,680 3,822,880 136,000 3,000 6,800 601,900 1,238,000 10,800 191,560