Padre, Inc., buys 80 percent of the outstanding common stock of Sierra Corporation on January 1, 2018, for $757,280 cash. At the acquisition date, Sierras total fair value, including the noncontrolling interest, was assessed at $946,600 although Sierras book value was only $696,000. Also, several individual items on Sierras financial records had fair values that differed from their book values as follows:

	Book Value				Fair Value
Land	$	66,300			$	251,300
Buildings and equipment (10-year remaining life)		294,000				240,000
Copyright (20-year remaining life)		192,000				300,000
Notes payable (due in 8 years)		(177,000	)			(165,400	)

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	$	(1,447,260	)		$	(649,500	)
Cost of goods sold		755,000				423,000
Depreciation expense		340,000				18,400
Amortization expense		0				9,600
Interest expense		44,700				6,500
Equity in income of Sierra		(152,440	)			0
Net income	$	(460,000	)		$	(192,000	)
Retained earnings, 1/1/18	$	(1,382,500	)		$	(536,000	)
Net income		(460,000	)			(192,000	)
Dividends declared		260,000				65,000
Retained earnings, 12/31/18	$	(1,582,500	)		$	(663,000	)
Current assets	$	913,780			$	671,700
Investment in Sierra		857,720				0
Land		350,000				66,300
Buildings and equipment (net)		870,000				275,600
Copyright		0				182,400
Total assets	$	2,991,500			$	1,196,000
Accounts payable	$	(192,000	)		$	(196,000	)
Notes payable		(467,000	)			(177,000	)
Common stock		(300,000	)			(100,000	)
Additional paid-in capital		(450,000	)			(60,000	)
Retained earnings (above)		(1,582,500	)			(663,000	)
Total liabilities and equities	$	(2,991,500	)		$	(1,196,000	)

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 consolidation entries are required, combine all debit entries into one amount and enter this amount in the debit column of the worksheet. Similarly, combine all credit entries into one amount and enter this amount in the credit column of the worksheet. Amounts in the Debit and Credit columns should be entered as positive. Negative amounts for the Noncontrolling Interest and Consolidated Totals columns should be entered with a minus sign.)

Consolidated Worksheet For Year Ending December 31, 2018 Consolidation Entries Noncontrolling Consolidated Accounts Padre Sierra Debit Credit Interest Totals Revenues Cost of goods sold Depreciation expense Amortization expense Interest expense Equity in income of Sierra Separate company net income Consolidated net income $(1,447,260)S (649,500) 423,000 18,400 9,600 6,500 755,000 340,000 44,700 (152,440) $ (460,000)$ (192,000) NI to noncontrolling interest 0 NI to Padre Company Retained earnings 1/1 Net income (above) Dividends declared $ (1,382,500)S (536,000) (460,000) (192,000) 65,000 $(1,582,500) $ (663,000) 260,000 Retained earnings 12/31 Retained earnings 1/1 Net income (above) Dividends declared $ (1,382,500)$ (536,000) (460,000)(192,000) 65,000 $ (1,582,500)$ (663,000) $ 913,780$671,700 260,000 Retained earnings 12/31 Current assets Investment in Sierra Land Buildings and equipment (net) Copyright 857,720 350,000 870,000 0 66,300 275,600 182,400 $ 2,991,500$ 1,196,000 $ (192,000)$ (196,000) (467,000 (177,000) Total assets Accounts payable Notes payable NCI in Sierra 1/1 NCI in Sierra 12/31 Common stock Additional paid-in capital Retained earnings 12/31 (above) Total liabilities and stockholders' equity 300,000100,000) (450,000) (60,000) 1,582,500)(663,000) $ (2,991,500)$(1,196,000)$