On 1/1/20, Polka Company acquired 80% of Jazz Company for $900,000. Jazz's retained earnings and capital stock accounts had balances of $500,000 each. An appraisal of Jazz's assets revealed that equipment was undervalued by $40,000. The equipment has a 5-year life and is being depreciated using the straight-line method. During 2020, Jazz reported $200,000 of net income. Assume that you are consolidating the balance sheets of Polka and Jazz on 12/31/20. Prepare the worksheet consolidation entries.