Timothy, Inc., owns 80% of Silver Co.'s outstanding common stock. Timothy's liabilities total $500,000, and Silver's liabilities total $120,000. Included in Silver's financial statements is a $80;000 note payable to Timothy. What amount of total iabilities should be reported in the consolidated financial statements?

Choices:

$500,000.

$596,000.

$536,000.

$540,000.