Padre, Inc., buys 80 percent of the outstanding common stock of Sierra Corporation on January 1, 2021, for $766,240 cash. At the acquisition date, Sierra's total fair value, including the noncontrolling interest, was assessed at $957,800 although Sierra's book value was only $650,000. Also, several individual items on Sierra's financial records had fair values that differed from their book values as follows: Land Buildings and equipment (10-year remaining life) Copyright (20-year remaining life) Notes payable (due in 8 years) Book Value $ 63,900 356,000 181,000 (224,000) Fair Value $ 254,900 326,000 317,000 (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, 2021, for both companies. Sierra $ (693,450) 461,090 19,000 9,050 5,400 Revenues Cost of goods sold Depreciation expense Amortization expense Interest expense Equity in income of Sierra Net income Retained earnings, 1/1/21 Net income Dividends declared Retained earnings, 12/31/21 Current assets Investment in Sierra Land Buildings and equipment (net) Copyright Total assets Accounts payable Notes payable Common stock Additional paid-in capital Retained earnings (above) Total liabilities and equities Padre $(1,426,320) 702,900 329,000 g 48,400 (155,080) $ (502,900) $(1,460,000) (502,900) 260,000 $(1,702,000) $ 1,062,680 869,320 347,000 928,000 0 $ 3,207,000 $ (251,000) (504,000) (300,000) (450,000) (1,702,000) $(3,207,000) $ (199,000) $ (490,000) (199,000) 65,000 $ (624,000) $ 619,150 0 63,900 337,000 171,950 $ 1,192,000 $ (184,900) (224,000) (100,000) (60,000) (624,000) $(1,192,000) At year-end, there were no intra-entity receivables or payables. PADRE INC. AND GERRA CORPORATION Conca do dworce For Yo Bong Daombar 2021 Congoleadon entre PRODOTTIMO ME CONTO Too ABOUME Paar God Bioma Dab Revenues 5 (693.450) 461.000 $11.426.320) 702.000 329.000 0 19.000 0.010 5.400 Cost of goods sold Depreciation expense Amortization expense Interest abans Equity in income a Sierra Sesante company name Consolidated natinde Nbo noncontrolling interest N to Padre Conny Retained earnings. 11/21 Ne sme 48.400 (166.080) 5 (502.000) $ (199 000 Dvidend and Retained earnings 1213121 Current assets Investment in San $[1.460.000) 5 490.000) 1602.000) 199.000) 250.000 55.000 $(1 702 000) $ (624 000) $ 1.052 580 5 619,150 80 B20 341.000 63.900 90,000 337 000 0 CO $ 3207.000 $ 1192.000 $ 200.000 284.000 1504.000 Buildings and equipment (not Coonon Recountable Nous avanza NB I NO 15 cm 1221 Cook 100 BE