A LTI Launch X Question 9 - Ch.4 Consolidations X Dashboard X G On January 1, 2023, French Comp X + X @ https://ezto.mheducation.com/ext/map/index.html?_con=conexternal_browser=0launchUrl=https%253A%252F%252Fconnect.mheducation.com%252Fconnect%252Fltiwrapper%252FltiaCloseWi... . . . Ch.4 Consolidations IV Homework i Saved Help Save Exit Submit G Check my work 9 W Padre, Incorporated, buys 80 percent of the outstanding common stock of Sierra Corporation on January 1, 2024, for $786,720 cash. y! At the acquisition date, Sierra's total fair value, including the noncontrolling interest, was assessed at $983,400, although Sierra's book value was only $648,000. Also, several individual items on Sierra's financial records had fair values that differed from their book values 11.11 as follows: points Account Book Value Fair Value f Land $ 66, 900 $ 329, 900 eBook Buildings and equipment (10-year remaining life) 276, 090 000'80 in Copyright (20-year remaining life) 199, 000 285, 000 Hint Notes payable (due in 8 years) (175, 000 (160, 600) -0) Print For internal reporting purposes, Padre, Incorporated, employs the equity method to account for this investment. The following account References balances are for the year ending December 31, 2024, for both companies. Account Padre Sierra Revenues $ (1, 487, 240) $ (604, 800) Cost of goods sold 744, 000 416, 000 Depreciation expense 265,000 18, 000 W Amortization expense 9 , 950 Interest expense 45 , 000 7, 850 Equity in income of Sierra (119, 760) Net income $ (553, 000) $ (153, 000) GW Retained earnings, 1/1/24 DO0'OSE'T ) $ $ (488,000) Net income 553 , 000 ) 153, 000) Dividends declared 000'097 65, 000 Retained earnings, 12/31/24 $ (1, 643, 000) $ (576, 000) Current assets $ 939, 520 $ 632, 050 Investment in Sierra 854, 480 Land 366,000 66, 900 Buildings and equipment (net) 960, 000 258, 000 Copyright 189, 050 Total assets $ 3, 120, 000 $ 1, 146, 000 + Mc Graw Hill 4 73OF will hp 8:58 PM Partly cloudy Q Search L ENG Q U 10/25/2025