On July 18, 2017, Patrone Holdings Ltd. paid $1,920,000 to purchase 90 percent of the common shares of Smirnoff Inc., and Smirnoff Inc. owes Patrone Holdings Ltd. $240,000 on a note payable. All historical cost amounts are equal to their fair market value on July 18, 2017. Immediately after the purchase, the two companies' balance sheets were as follows:

Required Prepare a consolidation worksheet.

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Patrone Holdings Ltd. Smirnoff Inc Assets Cash Accounts receivable, net Note receivable from Smirnoff Inc. Inventory Investment in Smirnoff Inc. Property, plant, and equipment, net Goodwill Total Liabilities and Shareholders' Equity Accounts payable Notes payable Note payable to Patrone Holdings Ltd. Other liabilities Common shares Retained earnings Total 340,000 480,000 $ 200,000 720,000 240,000 1,480,000 1,920,000 2,190,000 920,000 1,540,000 $6,750,000 $3,280,000 680,000 320,000 240,000 384,000 1,060,000 596,000 $3,280,000 $1,060,000 1,680,000 260,000 1,540,000 2,210,000 $6,750,000