Padre, Inc., buys 80 percent of the outstanding common stock of Sierra Corporation on January 1, 2015, for $706,560 cash. At the acquisition date, Sierra's total fair value, including the noncontrolling interest, was assessed at $883,200 although Sierra's book value was only $608,000. Also, several individual items on Sierra's financial records had fair values that differed from their book values as follows:

Book ValueFair ValueLand$66,500$221,500Buildings and equipment

(10-year remaining life)

369,000334,000Copyright (20-year life)164,000308,000Notes payable (due in 8 years)(139,000)(127,800)

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.

PadreSierraRevenues$(1,477,280)$(653,150)Cost of goods sold767,000419,000Depreciation expense350,00016,000Amortization expense08,200Interest expense50,4005,950Equity in income of Sierra(159,120)0Net income$(469,000)$(204,000)Retained earnings, 1/1/15$(1,430,000)$(448,000)Net income (above)(469,000)(204,000)Dividends declared260,00065,000Retained earnings, 12/31/15$(1,639,000)$(587,000)Current assets$1,034,320$478,700Investment in Sierra813,6800Land330,00066,500Buildings and equipment (net)934,000353,000Copyright0155,800Total assets$3,112,000$1,054,000Accounts payable$(199,000)$(168,000)Notes payable(524,000)(139,000)Common stock(300,000)(100,000)Additional paid-in capital(450,000)(60,000)Retained earnings(above)(1,639,000)(587,000)Total liabilities and equities$(3,112,000)$(1,054,000)

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

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