Pullman, Inc. acquired a controlling interest in Sierra Company on 1/1/20x1. At that time, the book value of Sierra Company's net assets was $16,970,000, includingthe following: BOOK VALUE FAIR VALUE m m Remaining Life Buildings $2,700,000 $3,400,000 7 years Equipment 3,700,000 3,300,000 5 years Land 1,700,000 2,550,000 indenite ln acquiring their controlling interest, Pullman paid $10,450,000 cash in exchange for 55% of the outstanding voting common stock of Sierra. At the time of the acquisition, the fair value of 100% of Sierra's outstanding common stock was $19,000,000. Pullman did not pay a control premium to acquire their 55% controlling interest. Any consideration paid in excess of the fair value of net assets acquired is assigned to goodwill, The account balances for Pullman, Inc. and Sierra Company at 12/31/20x1 are as follows: Pullman, Inci Mm Revenues (298,000,000) (103,750,000) Expenses 271,000,000 95,800,000 Equity in income of Sierra Company (4 361 500) 0 Net income (31 361 500) 7 950 000 Retained earnings, January 1, 20x1 (2,500,000) (100,000) Net income (above) (31,361,500) (7,950,000) Dividends paid 5 000 000 3,000,000 Retained earnings, December 31, 20x1 (28 861 500) (5,050,000) Current Assets 30,500,000 20,800,000 Investment in Sierra Company 13,161,500 Land 1,500,000 1,700,000 Buildings 5,600,000 2,360,000 Equipment (net) 3 100 000 2,960,000 Total assets 53 861 500 27,820,000 Accounts payable (3,100,000) (4,900,000) Notes payable (1,000,000) Common stock (2,900,000) (6,000,000) Additional paid-in capital (19,000,000) (10,870,000) Retained earnings, Dec. 31, 20x1 (above) (28 861 500) (5,050,000) Total liabilities and stockholders' equity (53 861 500) (27,820,000)