On January 1, 2016, Pai, a U.S. firm, purchases all the outstanding capital stock of Sta, a British firm, for $880,000, when

the exchange rate for British pounds is $1.55. The book values of Sta's assets and liabilities are equal to fair values on

this date, except for land that has a fair value of 200,000 and equipment with a fair value of 100,000.

Summarized balance sheet information for Pai in U.S. dollars and for Sta in pounds just before the business combination

is as follows:

Pai Sta

Current assets $3,000,000 100,000

Land 800,000 100,000

Buildingsnet 1,200,000 250,000

Equipmentnet 1,000,000 50,000

$6,000,000 500,000

Current liabilities $600,000 50,000

Notes payable 1,000,000 150,000

Capital stock 3,000,000 200,000

Retained earnings 1,400,000 100,000

$6,000,000 500,000

REQUIRED: Prepare consolidated balance sheet for Pai and Subsidiary at January 1, 2016, immediately

after the business combination