Padre, Inc., buys 80 percent of the outstanding common stock of Sierra Corporation on January 1, 2018, for $802,720 cash. At the acquisition date, Sierras total fair value, including the noncontrolling interest, was assessed at $1,003,400 although Sierras book value was only $690,000. Also, several individual items on Sierras financial records had fair values that differed from their book values as follows:

	Book Value	Fair Value
Land	$ 65,000	$ 290,000
Buildings and equipment (10-year remaining life)	287,000	263,000
Copyright (20-year remaining life)	122,000	216,000
Notes payable (due in 8 years)	(176,000)	(157,600)

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, 2018, for both companies.

	Padre	Sierra
Revenues	$(1,394,980)	$(684,900)
Cost of goods sold	774,000	432,000
Depreciation expense	274,000	11,600
Amortization expense	0	6,100
Interest expense	52,100	9,200
Equity in income of Sierra	(177,120)	0
Net income	$(472,000)	$(226,000)
Retained earnings, 1/1/18	$(1,275,000)	$(530,000)
Net income	(472,000)	(226,000)
Dividends declared	260,000	65,000
Retained earnings, 12/31/18	$(1,487,000)	$(691,000)
Current assets	$856,160	$764,700
Investment in Sierra	927,840	0
Land	360,000	65,000
Buildings and equipment (net)	909,000	275,400
Copyright	0	115,900
Total assets	$ 3,053,000	$ 1,221,000
Accounts payable	$(275,000)	$(194,000)
Notes payable	(541,000)	(176,000)
Common stock	(300,000)	(100,000)
Additional paid-in capital	(450,000)	(60,000)
Retained earnings (above)	(1,487,000)	(691,000)
Total liabilities and equities	$(3,053,000)	$(1,221,000)

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

Prepare a worksheet to consolidate the financial statements of these two companies

I just need help explaining the Noncontrolling interest in Sierra, see below....

Noncontrolling interest in Sierra

$ 231,960

Correct!

(1003400*0.2)+44280-13000

(1003400*0.2)+44280-13000 = 231,960 added figures