Padre, Inc., buys 80 percent of the outstanding common stock of Sierra Corporation on January 1, 2015, for $778,080 cash. At the acquisition date, Sierras total fair value, including the noncontrolling interest, was assessed at $972,600 although Sierras book value was only $604,000. Also, several individual items on Sierras financial records had fair values that differed from their book values as follows:

	Book Value			Fair Value
Land	$	66,700		$	323,700
Buildings and equipment (10-year remaining life)		332,000			318,000
Copyright (20-year life)		129,000			239,000
Notes payable (due in 8 years)		(148,000	)		(132,400	)

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, 2015, for both companies.

		Padre			Sierra
Revenues	$	(1,488,840	)	$	(605,850	)
Cost of goods sold		790,000			380,000
Depreciation expense		294,000			13,500
Amortization expense		0			6,450
Interest expense		48,000			5,900
Equity in income of Sierra		(155,160	)		0
Net income	$	(512,000	)	$	(200,000	)
Retained earnings, 1/1/15	$	(1,500,000	)	$	(444,000	)
Net income (above)		(512,000	)		(200,000	)
Dividends declared		260,000			65,000
Retained earnings, 12/31/15	$	(1,752,000	)	$	(579,000	)
Current assets	$	1,073,760		$	619,250
Investment in Sierra		881,240			0
Land		388,000			66,700
Buildings and equipment (net)		925,000			318,500
Copyright		0			122,550
Total assets	$	3,268,000		$	1,127,000
Accounts payable	$	(266,000	)	$	(240,000	)
Notes payable		(500,000	)		(148,000	)
Common stock		(300,000	)		(100,000	)
Additional paid-in capital		(450,000	)		(60,000	)
Retained earnings (above)		(1,752,000	)		(579,000	)
Total liabilities and equities	$	(3,268,000	)	$	(1,127,000	)

At year-end, there were no intra-entity receivables or payables.

Using the acquisition method, prepare the worksheet to consolidate these two companies.