Padre, Inc., buys 80 percent of the outstanding common stock of Sierra Corporation on January 1, 2018, for $736,000 cash. At the acquisition date, Sierra's total fair value, including the noncontrolling interest, was assessed at $920,000 although Sierra's book value was only $628,000. Also, several individual items on Sierra's financial records had fair values that differed from their book values as follows: Book Value Fair Value Land $ 235,900 260,000 318,00e (121,ee0) 68,900 305,eee 160,eee (133,eee) Buildings and equipment (18-year remaining 1ife) Copyright (20-year remaining life) Notes payable (due in 8 years) 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. Pare $ (1,se5,72e) Sierra Revenues (636,850) 436,eee Cost of goods sold Depreciation expense Amortization expense Interest expense 784,000 331, eee 16,200 8,eee 51,eee 7,650 Prey 1 of 2 Next> nerest eApense Equity in income of Sierra (131,280) $ Net income (471,000) $ (468,000) (169,000) 65,000 (572,000) 578,300 (169,000) Retained earnings, 1/1/18 $ (1,305,000) (471,000) 260,000 Net income Dividends declared Retained earnings, 12/31/18 $ (1,516,000) Current assets $ 983,720 815,280 355, eee 891,000 $ Investment in Sierra Land 68,900 288,800 152,000 Buildings and equipment (net) Copyright Total assets 3,045,00e 1,088,000 $ Accounts payable Notes payable (249,000) (530,eee) (, ) (450, e0e) (1,516,e00) $ (3,045,eee) (223,000) (133,000) (100, ) (, ) |(572,000) $ (1,088,00e) $ Common stock Additional paid-in capital Retained earnings (above) Total liabilities and equities At year-end, there were no intra-entity receivables or payables Check my w 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 th 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 ar Consolidated Totals columns should be entered with a minus sign.) PADRE INC., AND SIERRA CORPORATION Consolidated Worksheet For Year Ending December 31, 2018 Consolidation Entries Consolidated Totals Noncontrolling Interest Credit Debit Accounts Padre Sierra (1,505,720) es (636,850) Revenues 436,000 784,000 Cost of goods sold 16,200 Depreciation expense 331,000 0 8,000 Amortization expense 7,650 Interest expense 51,000 Next 1 of 2 Prey Check Debi raure AUCouma Totals Interest $ (636,850) $(1,505,720) Revenues 784,000 436,000 Cost of goods sold Depreciation expense 331,000 16,200 Amortization expense 8,000 0 Interest expense 7,650 51,000 Equity in income of Sierra (131,280) 0 $ (471,000) $ (169,000) Separate company net income Consolidated net income 0 NI to noncontrolling interest 0 NI to Padre Company Retained earnings 1/1 (1,305,000) (468,000) Net income (above) (471,000) (169,000) Dividends declared 260,000 65,000 (1,516,000) $ (572,000) Retained earnings 12/31 Current assets $ 983,720 $ 578.300 Investment in Sierra 815,280 Prey 1 of 2 Next> Check o10,JUU 903,120 Cunen asseis 815,280 Investment in Sierra 68,900 355,000 Land 288,800 891,000 Buildings and equipment (net) 0 152,000 Copyright $ 3,045,000 $ 1,088,000 Total assets s (249,000) (223,000) (530,000) Accounts payable (133,000) Notes payable NCI in Sierra 1/1 NCI in Sierra 12/31 (100,000) (60,000) (300,000) Common stock Additional paid-in capital (450,000) Retained earnings 12/31 (above) Total liabilities and stockholders' equity (1,516,000) (572,000) $(3,045,000)(1,088,000) S 0