Padre, Inc., buys 80 percent of the outstanding common stock of Sierra Corporation on January 1, 2018, for $736,960 cash. At the acquisition date, Slerra's total falr value, Including the noncontrolling Interest, was assessed at $921,200 although Slerra's book value was only $634,000. Also, several Indlvidual Items on Sierra's financial records had falr values that differed from thelr book values as follows: Land Buildings and equipment (1e-year remaining life) Copyright (2e-year remaining life) Notes payable (due in 8 years) Book Value Fair Value $ 60,8e0 $ 237,8ee 268,90e 305,e (213,8ee) 301,8e 177,ee (229,80e) 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 companles. Padre Sierra s(1,476,58e) 725,00e 352,000 Revenues Cost of goods sold Depreciation expense Amortization expense Interest expense Equity in income of Sierra (660, 428,0ee 14,200 8,85e 8,850 47,300 156,8ee $(509,) (201,900) $ (1,465,0e0) (474,000) Net income Retained earnings, 1/1/18 Net income Dividends declared (509,000) 260,00e (201,9e0) 65,9e $ (1,714,0) (610,000) $ 1,126,240 Retained earnings, 12/31/18 Current assets Investment in Sierra Land Buildings and equipment (net) Copyright 730,250 841,760 346,0ee 890,00e 60,80 286,8ee 168,15e Total assets $ 3,204, 1,246,90e Accounts payable Notes payable Common stock Additional paid-in capital Retained earnings (above) $(247,000) (247,000) (229,000) (100,000) (6e,0e0) (493,000) (300,000) (450,9e0) (1,714,00)619,950 Total liabilities and equities $ (3,204,0) (1,246,900) At year-end, there were no Intra-entity recelvables or payables Padre, Inc., buys 80 percent of the outstanding common stock of Sierra Corporation on January 1, 2018, for $736,960 cash. At the acquisition date, Slerra's total falr value, Including the noncontrolling Interest, was assessed at $921,200 although Slerra's book value was only $634,000. Also, several Indlvidual Items on Sierra's financial records had falr values that differed from thelr book values as follows: Land Buildings and equipment (1e-year remaining life) Copyright (2e-year remaining life) Notes payable (due in 8 years) Book Value Fair Value $ 60,8e0 $ 237,8ee 268,90e 305,e (213,8ee) 301,8e 177,ee (229,80e) 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 companles. Padre Sierra s(1,476,58e) 725,00e 352,000 Revenues Cost of goods sold Depreciation expense Amortization expense Interest expense Equity in income of Sierra (660, 428,0ee 14,200 8,85e 8,850 47,300 156,8ee $(509,) (201,900) $ (1,465,0e0) (474,000) Net income Retained earnings, 1/1/18 Net income Dividends declared (509,000) 260,00e (201,9e0) 65,9e $ (1,714,0) (610,000) $ 1,126,240 Retained earnings, 12/31/18 Current assets Investment in Sierra Land Buildings and equipment (net) Copyright 730,250 841,760 346,0ee 890,00e 60,80 286,8ee 168,15e Total assets $ 3,204, 1,246,90e Accounts payable Notes payable Common stock Additional paid-in capital Retained earnings (above) $(247,000) (247,000) (229,000) (100,000) (6e,0e0) (493,000) (300,000) (450,9e0) (1,714,00)619,950 Total liabilities and equities $ (3,204,0) (1,246,900) At year-end, there were no Intra-entity recelvables or payables