Padre, Incorporated, buys $80$ percent of the outstanding common stock of Sierra Corporation on January $1,2024,$ for $$755,520$ cash. At the acquisition date, Sierra$$s total fair value, including the noncontrolling interest, was assessed at $$944,400,$ although Sierra$$s book value was only $$673,000.$ Also, several individual items on Sierra$$s financial records had fair values that differed from their book values as follows:

Account Book Value Fair Value

Land $ $69,100$ $ $286,100$

Buildings and equipment $(10-$year remaining life$)336,000314,000$

Copyright $(20-$year remaining life$)113,000173,000$

Notes payable $($due in $8$ years$)(162,000)(145,600)$

For internal reporting purposes, Padre, Incorporated, employs the equity method to account for this investment. The following account balances are for the year ending December $31,2024,$ for both companies.

Account Padre Sierra

Revenues $ $(1,504,480)$ $ $(636,750)$

Cost of goods sold $757,000447,000$

Depreciation expense $328,00011,900$

Amortization expense $05,650$

Interest expense $44,2007,200$

Equity in income of Sierra $(129,720)0$

Net income $ $(505,000)$ $ $(165,000)$

Retained earnings, $1/1/24$ $ $(1,470,000)$ $ $(513,000)$

Net income $(505,000)(165,000)$

Dividends declared $260,00065,000$

Retained earnings, $12/31/24$ $ $(1,715,000)$ $ $(613,000)$

Current assets $ $1,032,760$ $ $665,450$

Investment in Sierra $833,2400$

Land $340,00069,100$

Buildings and equipment $($net$)949,000324,100$

Copyright $0107,350$

Total assets $ $3,155,000$ $ $1,166,000$

Accounts payable $ $(228,000)$ $ $(231,000)$

Notes payable $(462,000)(162,000)$

Common stock $(300,000)(100,000)$

Additional paid$-$in capital $(450,000)(60,000)$

Retained earnings $($above$)(1,715,000)(613,000)$

Total liabilities and equities $ $(3,155,000)$ $ $(1,166,000)$

At year$-$end, there were no intra$-$entity receivables or payables.

Required:

Prepare a worksheet to consolidate the financial statements of 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. Input all amounts as positive values.