A parent acquires all of the outstanding common stock of a subsidiary for a cash purchase price of $1,600,000. One reason the parent agreed to pay more than book value for the subsidiary is because the net property, plant & equipment was undervalued by $320,000. On the date of acquisition, the parent and subsidiary report the following balance sheets:

	Parent	Subsidiary
Assets
cash	960,000	320,000
receivables	1,600,000	640,000
inventory	1,920,000	1,280,000
PPE	7,360,000	1,280,000
equity investment	1,600,000	0
Totals	13,440,000	3,520,000
liabilities and stockholders equity
current liabilities	640,000	640,000
bonds payable	1,600,000	1,600,000
common stock	5,120,000	320,000
additional paid in capital	3,840,000	384,000
retained earnings	2,240,000	576,000
	13,440,000	3,520,000

Prepare the consolidation spreadsheet on the date of the acquisition.

Note: The label for consolidation step has been provided if there is more than one adjustment to the account.

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