Penfold Ltd. owns all the common shares of Simmons Ltd. Prepare a consolidation work sheet, using the following information. Assume that the fair value of the assets and liabilities of Simmons Ltd. are equal to their book values.

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Penfold Ltd Simmons Ltd Assets Cash Accounts receivable, net Note receivable from Simmons Ltd Inventory Investment in Simmons Ltd Property, plant, and equipment, net Total Liabilities and Shareholders' Equity Accounts payable Notes payable Other liabilities Common shares Retained earnings Total $ 55,000 264,000 $ 225,000 360,000 76,000 258,000 2,350,000 3,590,000 $6,859,000 159,000 2,900,000 $3,378,000 $ 357,000 462,000 78,000 1,980,000 3,982,000 $6,859,000 $180,000 759,000 210,000 670,000 1,559,000 $3,378,000