Padre, Inc., buys 80 percent of the outstanding common stock of Sierra Corporation on January 1,2021 , for $802 , 720 cash. At the acquisition date, Sierra's total fair value, including the noncontrolling interest, was assessed at $1 , 003 , 400 although Sierra's book value was only $690 , 000 . Also, several individual items on Sierra's financial records had fair values that differed from their book values as follows: 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, 2021, for both companies. At year-end, there were no intra-entity receivables or payables. Answer is complete but not entirely correct. PADRE INC., AND SIERRA CORPORATION Consolidated Worksheet For Year Ending December 31, 2021.

1. Padre, Inc., buys 80 percent of the outstanding common stock of Sierra Corporation on January
1,2021 , for $802 , 720 cash. At the acquisition date, Sierra's total fair value, including the
noncontrolling interest, was assessed at $1 , 003 , 400 although Sierra's book value was only
$690 , 000 . Also, several individual items on Sierra's financial records had fair values that
differed from their book values as follows: 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, 2021, for both companies. At year-end, there were no intra-entity
receivables or payables. Answer is complete but not entirely correct. PADRE INC., AND
SIERRA CORPORATION Consolidated Worksheet For Year Ending December 31, 2021