Padre, Inc., buys 80 percent of the outstanding common stock of Sierra Corporation on January 1, 2015, for $766,240 cash. At the acquisition date, Sierras total fair value, including the noncontrolling interest, was assessed at $957,800 although Sierras book value was only $650,000. Also, several individual items on Sierras financial records had fair values that differed from their book values as follows:

	Book Value			Fair Value
Land	$	63,900		$	254,900
Buildings and equipment (10-year remaining life)		356,000			326,000
Copyright (20-year life)		181,000			317,000
Notes payable (due in 8 years)		(224,000	)		(213,200	)

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	$	(1,426,320	)	$	(693,450	)
Cost of goods sold		702,000			461,000
Depreciation expense		329,000			19,000
Amortization expense		0			9,050
Interest expense		48,400			5,400
Equity in income of Sierra		(155,080	)		0
Net income	$	(502,000	)	$	(199,000	)
Retained earnings, 1/1/15	$	(1,460,000	)	$	(490,000	)
Net income (above)		(502,000	)		(199,000	)
Dividends declared		260,000			65,000
Retained earnings, 12/31/15	$	(1,702,000	)	$	(624,000	)
Current assets	$	1,062,680		$	619,150
Investment in Sierra		869,320			0
Land		347,000			63,900
Buildings and equipment (net)		928,000			337,000
Copyright		0			171,950
Total assets	$	3,207,000		$	1,192,000
Accounts payable	$	(251,000	)	$	(184,000	)
Notes payable		(504,000	)		(224,000	)
Common stock		(300,000	)		(100,000	)
Additional paid-in capital		(450,000	)		(60,000	)
Retained earnings (above)		(1,702,000	)		(624,000	)
Total liabilities and equities	$	(3,207,000	)	$	(1,192,000	)

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

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

rev: 09_30_2014_QC_54910