Holly Corporation purchased all of Swiss Corporation's common stock for $970,000 on July 1, 2003. The entire differential was attributed to the equipment. At that date, Swiss had equipment with a book value of $740,000 and a fair value of $880,000. The equipment is depreciated using the straight-line method over a remaining life of 240 months. What amount should be included as equipment (net) on the December 31, 2003, consolidated balance sheet?