Padre, Inc., buys 80 percent of the outstanding common stock ofSierra Corporation on January 1, 2018, for $736,960 cash. At theacquisition date, Sierra’s total fair value, including thenoncontrolling interest, was assessed at $921,200 although Sierra’sbook value was only $634,000. Also, several individual items onSierra’s financial records had fair values that differed from theirbook values as follows:

	Book Value				Fair Value
Land	$	60,800			$	237,800
Buildings and equipment (10-yearremaining life)		301,000				268,000
Copyright (20-year remaininglife)		177,000				305,000
Notes payable (due in 8years)		(229,000	)			(213,800	)

For internal reporting purposes, Padre, Inc., employs the equitymethod to account for this investment. The following accountbalances are for the year ending December 31, 2018, for bothcompanies.

	Padre				Sierra
Revenues	$	(1,476,500	)		$	(660,900	)
Cost of goods sold		725,000				428,000
Depreciation expense		352,000				14,200
Amortization expense		0				8,850
Interest expense		47,300				8,850
Equity in income of Sierra		(156,800	)			0
Net income	$	(509,000	)		$	(201,000	)
Retained earnings, 1/1/18	$	(1,465,000	)		$	(474,000	)
Net income		(509,000	)			(201,000	)
Dividends declared		260,000				65,000
Retained earnings, 12/31/18	$	(1,714,000	)		$	(610,000	)
Current assets	$	1,126,240			$	730,250
Investment in Sierra		841,760				0
Land		346,000				60,800
Buildings and equipment(net)		890,000				286,800
Copyright		0				168,150
Total assets	$	3,204,000			$	1,246,000
Accounts payable	$	(247,000	)		$	(247,000	)
Notes payable		(493,000	)			(229,000	)
Common stock		(300,000	)			(100,000	)
Additional paid-in capital		(450,000	)			(60,000	)
Retained earnings (above)		(1,714,000	)			(610,000	)
Total liabilities andequities	$	(3,204,000	)		$	(1,246,000	)

At year-end, there were no intra-entity receivables orpayables.

Using the acquisition method, prepare the worksheet toconsolidate these two companies. (For accounts wheremultiple consolidation entries are required, combine all debitentries into one amount and enter this amount in the debit columnof the worksheet. Similarly, combine all credit entries into oneamount and enter this amount in the credit column of the worksheet.Amounts in the Debit and Credit columns should be entered aspositive. Negative amounts for the Noncontrolling Interest andConsolidated Totals columns should be entered with a minussign.)