Siego Corporation, a U.S. company, purchases all of the outstanding stock of Lulu Company, which operates outside the U.S. on January 1, 2020. Lulu' net assets have fair values that equal their book values with the exception of land that has a fair value of 200,000 Euros and building with a fair value of 280,000 Euros. Siego paid $600,000 for this acquisition. The balance sheets for Siego and Lulu are shown below just before the business combination. The exchange rate at the date of acquisition was $.90 per euro.

Siego ($)

Lulu(Euro)

Current Assets

1,500,000

500,000

Investment in Sub

600,000

Land

600,000

190,000

Buildings - net

700,000

250,000

Equipment - net

2,000,000

200,000

Total Assets

5,400,000

1,140,000

Current Liabilities

800,000

220,000

Notes Payable

1,300,000

300,000

Capital Stock

2,400,000

270,000

Retained Earnings

900,000

350,000

Total Liabilities

5,400,000

1,140,000

Required:

Prepare a consolidated balance sheet for Siego and subsidiary at January 1, 2020 immediately following the business combination.