Padre, Inc., buys 80 percent of the outstanding common stock of Sierra Corporation on January 1, 2021, for $680,000 cash. At the acquisition date, Sierras total fair value, including the noncontrolling interest, was assessed at $850,000 although Sierras book value was only $600,000. Also, several individual items on Sierras financial records had fair values that differed from their book values as follows:

Book Value				Fair Value
Land	$	60,000			$	225,000
Buildings and equipment (10-year remaining life)		275,000				250,000
Copyright (20-year remaining life)		100,000				200,000
Notes payable (due in 8 years)		(130,000	)			(120,000	)

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 SierraRevenues$(1,360,000) $(540,000)Cost of goods sold 700,000 385,000 Depreciation expense 260,000 10,000 Amortization expense 0 5,000 Interest expense 44,000 5,000 Equity in income of Sierra (105,000) 0 Net income$(461,000) $(135,000)Retained earnings, 1/1/21$(1,265,000) $(440,000)Net income (461,000) (135,000)Dividends declared 260,000 65,000 Retained earnings, 12/31/21$(1,466,000) $(510,000)Current assets$965,000 $528,000 Investment in Sierra 733,000 0 Land 292,000 60,000 Buildings and equipment (net) 877,000 265,000 Copyright 0 95,000 Total assets$2,867,000 $948,000 Accounts payable$(191,000) $(148,000)Notes payable (460,000) (130,000)Common stock (300,000) (100,000)Additional paid-in capital (450,000) (60,000)Retained earnings (above) (1,466,000) (510,000)Total liabilities and equities$(2,867,000) $(948,000)

t 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.)