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, Sierras total fair value, including the noncontrolling interest, was assessed at $983,400 although Sierras book value was only $648,000. Also, several individual items on Sierras financial records had fair values that differed from their book values as follows:

	Book Value				Fair Value
Land	$	66,900			$	329,900
Buildings and equipment (10-year remaining life)		276,000				248,000
Copyright (20-year remaining life)		199,000				285,000
Notes payable (due in 8 years)		(175,000	)			(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	$	(1,487,240	)		$	(604,800	)
Cost of goods sold		744,000				416,000
Depreciation expense		265,000				18,000
Amortization expense		0				9,950
Interest expense		45,000				7,850
Equity in income of Sierra		(119,760	)			0
Net income	$	(553,000	)		$	(153,000	)
Retained earnings, 1/1/21	$	(1,350,000	)		$	(488,000	)
Net income		(553,000	)			(153,000	)
Dividends declared		260,000				65,000
Retained earnings, 12/31/21	$	(1,643,000	)		$	(576,000	)
Current assets	$	939,520			$	632,050
Investment in Sierra		854,480				0
Land		366,000				66,900
Buildings and equipment (net)		960,000				258,000
Copyright		0				189,050
Total assets	$	3,120,000			$	1,146,000
Accounts payable	$	(237,000	)		$	(235,000	)
Notes payable		(490,000	)			(175,000	)
Common stock		(300,000	)			(100,000	)
Additional paid-in capital		(450,000	)			(60,000	)
Retained earnings (above)		(1,643,000	)			(576,000	)
Total liabilities and equities	$	(3,120,000	)		$	(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.)

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.) PADRE INC., AND SIERRA CORPORATION Consolidated Worksheet For Year Ending December 31, 2021 Consolidation Entries Accounts Padre Sierra Debit Credit Noncontrolling Interest Consolidated Totals S 2.092,040 1.160,000 285,800 $ (604,800) 416,000 18.000 9,950 7,850 $(1.487.240) 744,000 265,000 0 45.000 (119.760) $ (553,000) 2,800 4,300 1,875 119.760 14,250 54,725 0 0 $ (153,000) S 3,606,815 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 $ (488,000) (153.000) 65,000 $ (576,000) s 632,050 $(1.350.000) (553.000) 260,000 $(1,643.000) $ 939,520 854,480 366.000 960,000 0 $ 3,120,000 68,900 258.000 189,050 $ 1.140,000 $ (235.000) (175.000) $ (237.000) (490.000) s 0 Common stock Additional paid-in capital Retained earnings (above) Total liabilities and equities (300.000) (450,000) (1.643.000) $ (3,120.000) (100.000) (60.000) (576,000) $(1,146.000) $ 125,935 $ 2,800