Problem 4-37 (LO 4-1, 4-5, 4-6) Padre, Inc., buys 80 percent of the outstanding common stock of Sierra Corporation on January 1, 2015, for $751,680 cash. At the acquisition date, Sierra's total fair value, including the noncontrolling interest, was assessed at $939,600 although Sierra's book value was only $683,000. Also, several individual items on Sierra's financial records had fair values that differed from their book values as follows: Land Buildings and equipment (10-year remaining te Copyright 20-year) Notes payable due in 8 years Book Value Far Walue $ 68.200 $268.200 350.000 327.000 105.000 175.000 1205.000) (195.400 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, 2015, for both companies Padre Sierra $1,431,820) $636,250) 764,000 414,000 293.000 12,600 0 5.250 48,500 5.400 (155.60) 0 Revenues Cost of goods sold Depreciation expense Amortion expense Interest expense Equity in income of Siena Net income Retained caming, 1/1/15 Net income (above) Dividende declared Retained earings, 12/31/15 $ 42,000 $ (197.000) $11.467.500) 5523,000) (482,000) (197.000) 260,000 65,000 $(1,689,5001 5655.000 Current Investment in Sie Land Buildings and equipment Copyright $ 1,018. 140 856,60 339,000 956,000 0 $ 685,650 0 68.200 337,400 99,750 Total assets $ 3,168,500 $ 1,191,000 Accounts payable Notes payable Common och Additional paid.in capital Retained eaming (above) $ 204,000) 5 (171,000) (525,000) (205,000) (300,000) (100,000) (450,000) (50,000) Totables and equi $(3,168,500) $61,191,000) At year-end, there were no intra-entity receivables or payables. Using the acquisition method, prepare the worksheet to consolidate these two companies