Balance sheets for Salt Company and Pepper Company on December 31, 2018, follow:

	Salt	Pepper
ASSETS
Cash	$95,000	$180,000
Receivables	117,000	230,000
Inventories	134,000	231,400
Plant assets	690,000	1,236,500
Total assets	$1,036,000	$1,877,900
EQUITIES
Accounts payable	$180,000	$255,900
Mortgage payable	152,500	180,000
Common stock, $20 par value	340,000	900,000
Other contributed capital	179,500	270,000
Retained earnings	184,000	272,000
Total equities	$1,036,000	$1,877,900

Pepper Company tentatively plans to issue 30,000 shares of its $20 par value stock, which has a current market value of $37 per share net of commissions and other issue costs. Pepper Company then plans to acquire the assets and assume the liabilities of Salt Company for a cash payment of $800,000 and $300,000 in longterm 8% notes payable. Pepper Company's receivables include $60,000 owed by Salt Company. Pepper Company is willing to pay more than the book value of Salt Company assets because plant assets are undervalued by $215,000 and Salt Company has historically earned abovenormal profits.

Prepare a pro forma balance sheet showing the effects of these planned transactions.