Padre, Inc., buys 80 percent of the outstanding common stock of Sierra Corporation on January 1, 2015, for $778,400 cash. At the acquisition date, Sierras total fair value, including the noncontrolling interest, was assessed at $973,000 although Sierras book value was only $674,000. Also, several individual items on Sierras financial records had fair values that differed from their book values as follows: Book Value Fair Value Land $ 60,200 $ 310,200 Buildings and equipment (10-year remaining life) 293,000 242,000 Copyright (20-year life) 198,000 282,000 Notes payable (due in 8 years) (204,000 ) (188,000 ) 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
Revenues	$	(1,461,980	)	$	(669,550	)
Cost of goods sold		739,000			420,000
Depreciation expense		345,000			10,500
Amortization expense		0			9,900
Interest expense		49,500			6,150
Equity in income of Sierra		(177,520	)		0
Net income	$	(506,000	)	$	(223,000	)
Retained earnings, 1/1/15	$	(1,315,000	)	$	(514,000	)
Net income (above)		(506,000	)		(223,000	)
Dividends declared		260,000			65,000
Retained earnings, 12/31/15	$	(1,561,000	)	$	(672,000	)
Current assets	$	885,080		$	695,200
Investment in Sierra		903,920			0
Land		322,000			60,200
Buildings and equipment (net)		975,000			282,500
Copyright		0			188,100
Total assets	$	3,086,000		$	1,226,000
Accounts payable	$	(260,000	)	$	(190,000	)
Notes payable		(515,000	)		(204,000	)
Common stock		(300,000	)		(100,000	)
Additional paid-in capital		(450,000	)		(60,000	)
Retained earnings (above)		(1,561,000	)		(672,000	)
Total liabilities and equities	$	(3,086,000	)	$	(1,226,000	)

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

Using the acquisition method, prepare the worksheet to consolidate these two companies.