Problem 04.39 Iotals for the business combination for the year ending December 31, 2018 PADRE, INC. AND SIERRA CORPORATION Interest expense Equity in income of Sierra Consolidated net income Net income attibutable to NCl Net income to Padre Company Retained earnings, 1/1 Dindends declared Retained eamings, 12/31 68 69 70 71 72 7 7 7 7 68 69 70 71 7 7 7 7 7 7 7 7 7 7 7 7 7 78 Land 79 8 Buildings and equepment (net) \begin{tabular}{l|l} \hline 82 & \\ \hline 83 \\ 84 \\ 85 \end{tabular} \mid Copynight 85 Current assets Investment in Sierra Total assets Accounts payatke Totes payable Notes payable Noncontroling interest in Sierra Common stock Additional paid-in captal Retained earnings, 12/31 Total liabilities 8 equities PADRE, INC. AND SIERRA CORPORATION Consolidation Worksheet \begin{tabular}{|c|c|c|c|c|c|} \hline \multirow[b]{2}{*}{ Padre } & \multirow[b]{2}{*}{ Sierra } & \multicolumn{2}{|c|}{ Consolidation Entries } & \multirow{2}{*}{Non-controlingInterest} & \multirow{2}{*}{ConsolidatedTotals} \\ \hline & & Debit & Credit & & \\ \hline(1,394,980) & (684,900) & & & & \\ \hline 774,000 & 432,000 & & & & \\ \hline 274,000 & 11,6006,100 & & & & \\ \hline 52,100 & 9,200 & & & & \\ \hline(177.120) & = & & & & \\ \hline(472,000) & (2226.000) & & & & \\ \hline & & & & & \\ \hline & & & & & \\ \hline & & & & & \\ \hline(1,275,000) & (530,000) & & & & \\ \hline(472,000) & (2226,000) & & & & \\ \hline 260,000 & 65,000 & & & & \\ \hline(1.487.000) & (691,000) & & & & \\ \hline 856,160 & 764,700 & & & & \\ \hline 927,840 & & & & & \\ \hline & & & & & \\ \hline & & & & & \\ \hline 360,000909,000 & & & & & \\ \hline 909,000 & 275,400115,900 & & & & \\ \hline 3053,000 & 1.221 .000 & & & & \\ \hline \end{tabular} Sierra Corporation outstanding common stock acquired by Padre, Inc. 80% Cash paid by Padre, Inc. for Sierra Corporation shares Sierra's assessed fair value Book value of Sierra Corporation $$$802,7201,003,400690,000 Sierra accounts values on 1/1/18 Land Buildings and equipment (10-year remaining life) Copyright (20-year remaining life) Notes payable (due in 8 years) Revenues Cost of goods sold Depreciation expense Amortization expense Interest expense Equity in income of Sierra Net income Retained earnings, 1/1/18 Net income Dividends declared Retained earnings, 12/31/18 Current assets Investment in Sierra Land Buildings and equipment (net) Copyright Total assets Accounts payable Notes payable Common stock Additional paid-in captal Retained earnings Total liabilities and equity \begin{tabular}{cc} $(1,275,000) & (530,000) \\ (472,000) & (226,000) \\ 260,000 & 65,000 \\ \hline$(1,487,000)$ & (691,000) \\ \hline \end{tabular} \begin{tabular}{rrr} 856,160 & $ & 764,700 \\ 927,840 & & - \\ 360,000 & 65,000 \\ 909,000 & 275,400 \\ & - & 115,900 \\ \hline$3,053,000 & $1,221,000 \\ \hline \end{tabular} Note: Credits are indicated by parentheses
