Padre, Inc., buys 80 percent of the outstanding common stock of Sierra Corporaion on January 1, 2018, for $765,440 cash. At the acquisition date, Sierra's total fair value, including the noncontrolling interest, was assessed at $956,800 although Sierra's book value was only $694,000. Also, several individual items on Sierra's financial records had fair values that differed from their book values as follows Fair Value Book Value 241, 200 Land S 63, 200 365, 000 Buildings and equipment (10-year remaining life) Copyright (20-year remaining liffe) Notes payable (due in 8 years) 331, 000 159,000 (208,000) 261, 000 (191, 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, 2018, for both companies. Padre Sierra $ (1, 498, 640) (686, 150) Revenues Cost of goods sold Depreciation expense Amortization expense 759,000 339, 000 445,000 12, 400 7,950 Interest expense 47, 400 9, 800 Equity in income of sierra (165, 760) Net income (519,000) (211,000) (1,332, 500) (519,000) 260, 000 Retained earnings, 1/1/18 Net income (534, 000) (211, 000) Dividends declared 65,000 (1,591, 500) (680, 000) Retained earnings, 12/31/18 S S Current assets 913,300 630, 150 879,200 365, 000 in Sierra Investment Land 63, 200 Buildings and equipment (net) Copyright 948, 000 352, 600 0 151, 050 $ 3, 105,500 $ 1, 197,000 Total assets $ (149,000) (208,000) Accounts payable Notes payable S (270, 000) (494, 000) (300, 000) Common stock (100, 000) Additional paid-in capital Retained earnings (above) (60,000) (680, 000) (450, 000) (1,591,500) $ (3,105,500) $(1, 197,000) Total liabilities and equities At year-end, there were no intra-entity receivables or payables. Using the acquisition method, prepare the worksheet to consolidate these two companies Answer is not complete. PADRE INC., AND SIERRA CORPORATION Consolidated Worksheet For Year Ending December 31, 2018 Consolidation Entries Noncontrolling Consolidated Accounts Padre Sierra Debit Credit Interest Totals 0 Revenues (686,150) (2,184,790) (1,498,640) 0 Cost of goods sold 759,000 445,000 1,204,000 Depreciation expense 0 348,000 339,000 12,400 3,400 Amortization expense 7,950 5,100 13,050 0 59,300 Interest expense 47,400 9,800 2,100 0 Equity in income of Sierra (165,760) 165,760 0 $(519,000) $(211,000) 0 Separate company net income Consolidated net income (560,440) NI to noncontrolling interest (41,440) 41,440 0$ (519,000) NI to Padre Company Retained earnings 1/1 $ (534,000) (1,332,500) 534,000 (1,332,500) Net income (above) 211,000 X (519,000) (211,000) (519,000) 52,000 13,000 Dividends declared 260,000 65,000 260,000 (680,000) (1,591,500) Retained earnings 12/31 (1,591,500) $ 913,300 $630,150 Current assets 1,543,450 0 879,200 113,760 113,760 Investment in Sierra 63,200 Land 365,000 178,000 0 606,200 Buildings and equipment (net) 0 1,270,000 948,000 352,600 3,400 34,000 0 151,050 Copyright 102,000 5,100 247,950 $3,105,500 $1,197,000 0 3,667,600 Total assets Accounts payable $ (270,000) $(149,000) (419,000) Notes payable 0 (494,000) (208,000) 16,800 (687,300) 2,100 (191,360) NCI in Sierra 1/1 0 $ (219,800) NCI in Sierra 12/31 (219,800) 100,000 Common stock (300,000) (100,000) (300,000) Additional paid-in capital 60,000 (450,000) (60,000) (450,000) Retained earnings 12/31 (above) (1,591,500) (680,000) (1,591,500) $ 210,360 $ (3,667,600) Total liabilities and stockholders' equity (1,197,000) (3,105,500) 1,491,920