Pisa Inc. paid $1,040,000 to acquire all the common shares of Sienna Ltd., and Sienna Ltd. owes Pisa Inc. $120,000 on a note payable. The fair market value of Sienna’s net assets equalled the book value. Immediately after the purchase on June 30, 2020, the two companies’ balance sheets were as shown below:

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Pisa Sienna Eliminations Consolidated Inc. Ltd. Debit Credit Amounts Assets Cash 80,000 72,000 Accounts receivable, net 288,000 144,000 Note receivable from Sienna Ltd. 120,000 Inventory 480,000 388,000 Investment in Sienna Ltd. 1,040,000 Property, plant, and equipment, net 608,000 720,000 Total assets 2,616,000 1,324,000 Liabilities and Shareholders' Equity Accounts payable 192,000 128,000 Notes payable 588,000 224,000 Note payable to Pisa Inc. 120,000 Other liabilities 204,000 12,000 Common shares 880,000 440,000 Retained earnings 752,000 400,000 Total liabilities and shareholders' equity 2,616,000 1,324,000