Padre, Inc. buys 80 percent of the outstanding common stock of Sierra Corporation on January 1, 2018, for $760,960 cash. At the acquisition date, Sierra's total fair value, including the noncontrolling interest, was assessed at $951,200 although Sierra's book value was only $619,000. Also, several individual items on Sierra's financial records had fair values that differed from their book as follows:

Padre, Inc.. buys 80 percent of the outstanding common stock of Sierra Corporation on January 1, 2018, for $760,960 cash. At the acquisltion date, Slerra's total falr value, Including the noncontrolling Interest, was assessed at $951,200 although Slerra's book value was only $619,000. Also, several IndMdual Items on Sierras financial records had falr values that differed from thelr book values as follows: Book Value Fair Value $ 67,480 $ 290,488 Land Buildings and equipment (18-year remaining life) Copyright (28-year remaining life) Notes payable (due in 8 years) 335,808 197,808 (165,898) 299,880 323 , (145,888) 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. Revenues Cost of goods sold Depreciation expense Amortization expense Interest expense Equity in income of Sierra $ (1,465,288) (636,688) 788,888 388,888 417,888 13,800 9,858 6,758 50,288 (147,928 $(467,88) Net income $ (198,808) Retained earnings, 1/1/18 Net income Dividends declared s (1,482,588) (459,898) (198,898) (467,898) 268,800 65,888 5R oo- $ (584,808) Retained earnings, 12/31/18 Current assets Investnent in Sierra Land Buildings and equipment (net) Copyright (1,689,588) 939,628 494,458 856,888 389,888 976 , 67,488 322,888 Total assets $ 1,871,888 Accounts payable Notes payable Conmon stock Additional paid-in capital Retained earnings (above) $ (288,868) (165,898) (188,898) (68,808) 1.689,588)(584 ,888) $ (1,071,808) (522,888) (368,808) (458,898) Tota liabilities and equities (3,881,500 At year-end, there were no Intra-entity recelvables or payables