Pluto Corp. paid $750,000 to acquire all the common shares of Saturn Inc., and Saturn Inc. owes Pluto Corp. $170,000 on a note payable. The fair market value of Saturn Inc.’s net assets equalled the book value. Immediately after the purchase on May 31, 2020, the two companies’ balance sheets were as follows:

Required

Prepare the consolidation worksheet.

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Pluto Saturn Eliminations Consolidated Corp. Debit Credit Inc. Amounts Assets Cash 60,000 100,000 Accounts receivable, net 210,000 150,000 Note receivable from Saturn Inc. 170,000 Inventory 300,000 440,000 Investment in Saturn Inc. 750,000 Property, plant, and equipment, net 600,000 500,000 Total assets 2,090,000 1,190,000 Liabilities and Shareholders' Equity Accounts payable 250,000 40,000 Notes payable 400,000 210,000 Note payable to Pluto Corp. 170,000 Other liabilities 156,000 80,000 Common shares 800,000 500,000 Retained earnings 484,000 190,000 Total liabilities and shareholders' equity 2,090,000 1,190,000