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 Book ValueFair Value Land Buildings and equipment (10-year remaining life) Copyright (20-year remaining life) Notes payable (due in 8 years) 63,000297,000 355,000 137,000 311,000 217,000 (141,400) (155,000) 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, 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 Book ValueFair Value Land Buildings and equipment (10-year remaining life) Copyright (20-year remaining life) Notes payable (due in 8 years) 63,000297,000 355,000 137,000 311,000 217,000 (141,400) (155,000) 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