Padre, Inc., buys 80 percent of the outstanding common stock of Sierra Corporation on January 1, 2018, for $754,080 cash. At the acquisition date, Sierra's total fair value, including the noncontrolling interest, was assessed at $942,600 although Sierra's book value was only $659,000. 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) 355, 000 137,000 (155, 000) $ 63,000 297,000 311,000 217,000 (141,400) 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 Cost of goods sold Depreesation expense Anortization expense Interest expense Equity in incone of Sierra (1,427,540)(657,900 413,000 11,500 6,850 6,550 752,000 292,000 43,500 5 1 5 , 000) Net income Retained earnings, 1/1/18 Net ineome Dividends declared s (1,362,500) (515, 000) 260,000 6- (220 , 000) (499,000) (220,000) $ 1,617,500) (654, 000) Retained earnings, 12/31/18 Current assets Investnent in Sierra Land Buildings and equipnent (net) Copyright 941,460 650,350 877,040 308,000 924,000 0130 150 63,000 343,500 Total assets 3,050,500 ,187,000