Padre, Inc., buys percent of the outstanding common stock of Sierra Corporation on January for $cash At the acquisition date, Sierras total fair value, including the noncontrolling interest, was assessed at $although Sierras book value was only $Also several individual items on Sierras financial records had fair values that differed from their book values as follows:
Book Value Fair Value
Land $ $
Buildings and equipment year remaining life
Copyright year remaining life
Notes payable due in years
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 for both companies.
Please fill in the debit, credit, noncontrolling interest, and consolidated totals columns in the chart.
