Question $2(1$ point$)$

On December $31,2024,$ Cindy Ltd$.$ acquired $35\backslash \%$ of the shares of Crawford Inc. for $\backslash (\backslash$$ $125,000\backslash ).$ Crawford's shareholders' equity at that time consisted of $\backslash (\backslash$$ $175,000\backslash )$ in common shares and $\backslash$$$95,000$ in retained earnings. The fair value of the assets and liabilities was equal to the carrying value with the exception of the following:

On January $1,2025,$ Cindy sold inventory to Crawford earning a profit of $\backslash$$$85,000.$ At December $31,2025,$ Crawford still held $40\backslash \%$ of the inventory. Crawford Inc. earned $\backslash (\backslash$$ $225,000\backslash )$ in profit for the year ending December $31,2025.$ Cindy earned $\backslash$$$300,000$ without accounting for its investment in Crawford. Both companies pay tax at a rate of $20\backslash \%.$

Determine the equity income from Crawford for the year ending December $31,2025.$