Padre, Inc., buys 80 percent of the outstanding common stock of Sierra Corporation on January 1, 2018, for $755,520 cash. At the acquisition date, Sierras total fair value, including the noncontrolling interest, was assessed at $944,400 although Sierras book value was only $673,000. Also, several individual items on Sierras financial records had fair values that differed from their book values as follows:

Padre, Inc., buys 80 percent of the outstanding common stock of Sierra Corporation on January 1, 2018, for $755,520 cash. At the acquisition date, Sierra's total fair value, including the noncontrolling interest, was assessed at $944.400 although Sierra's book value was only $673.000. Also, several individual items on Sierra's financial records had fair values that differed from their book values as follows: 5 Book Value Fair Value Land Buildings and equipment (1e-year remaining life) Copyright (28-year remaining life) Notes payable (due in 8 years) 69,18 286,188 336,8e8 113,888 (162,808) 314,808 173,8e8 (145, 688) 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. Sierra Revenues Cost of goods sold Depreciation expense Amortization expense Interest expense Equity in income of Sierra (1,584,488) (636,758) 447,808 11,988 757,808 328,80e 44,288 7,288 s(585,) (165,808) $ (1,478,) (513,808) (165,808) 268 88865.,888 (1,715,8) (613,8e8) 1,832,768 665,45e Net income Retained earnings, 1/1/18 Net income Dividends declared (585,808) Retained earnings, 12/31/18 Current assetS Investment in Sierra Land Buildings and equipment (net) Copyright 833,248 348,808 949,808 69,188 324,18e 107,356e $ 3,155,808 1,166,808 Total assets Accounts payable Notes payable Common stock Additional paid-in capital Retained earnings (above) $(228,88 (231,808) (162,80e) (186,880) (462,888) (38e,808) (458,868) (1.715,80)(613R888) s (3,155,800) (1,166,808) Total liabilities and equities At year-end, there were no intra-entity receivables or payables. Using the acquisition method, prepare the worksheet to consolidate these two companies. (For accounts where multiple nsolidation entries re required, c mbine all debit entries Into one mount and enter this amount In the debit column of the worksheet. Slmllerly, comblne all credlt entrles Into one amount and enter thls amount In the credit column of the worksheet. Amounts In the Deblt and Credit columns should be entered as posltlve. Negatlve amounts for the NoncontrollIng Interest and Consolldated Totals columns should be entered with a mlnus sign.) RE INC., AND SIERRA CORPORATIO Consolidated Worksheet For Year Ending December 31, 2018 Consolidation Entries No Accounts Padre Sierra Debit Credit Totals Revenues Cost of goods sold Depreciation expense S (1,504,480) 5 (836,750) 447.000 11,900 5,650 7.200 757.000 28,000 44,200 Interest expense Equity in income of Sierra Separate company net income Consolidated net income (129,720) S (505,000)S (185,000) Nl to noncontrolling interest Nl to Padre Company Retained earnings1 Net income (above) Dividends declared S (1,470,000) S (513,000) (505,000) (185,000) 5,000 S (1,715,000)S (613,000) S 1,032,760 665.450 260,000 earmings 12/31 Current assets Investment in Sierra Land Buildings and equipment (net) 833,240 40.000 949,000 60,100 324.100 107.350 S 3.155,000 S 1.168,000 S (228,000) S (231,000) (482,000) (162,000) Total assets Accounts payable Notes payable NCI in Sierra 111 NCI in Sierra 1231 Common stock Additional paid-in capital Retained earnings 12/31 (above) Total liabilities and stockholders' equity (300,000 (100,000) 80,000 (450,000) 1,715,000(13,000 s (3.155.000)(1.188,000