Required information

$On$ January $1,2022,$ Pride Corporation purchased $90$ percent $of$ the outstanding voting shares $of$ Star, Incorporated, for

$$540,000$ cash. The acquisition$-$date fair value $of$ the noncontrolling interest was $$60,000.At$ January $1,2022,$ Star's net

assets had a total carrying amount $of$ $$420,000.$ Equipment $(eight-$year remaining life$)$ was undervalued $on$ Star's financial

records $by$ $$80,000.$ Any remaining excess fair value over book value was attributed $to$ unpatented technology developed

$by$ Star $(four-$year remaining life$),$ but not recorded $on$ its books. Star recorded net income $of$ $$70,000in2022$ and

$$80,000in2023.$ Each year since the acquisition, Star has declared $a$ $$20,000$ dividend. $At$ January $1,2024,$ Pride's

retained earnings show $a$ $$250,000$ balance.

Selected account balances for the two companies from their separate operations were $as$ follows:

What $is$ consolidated net income for $2024?$

Multiple Choice

$$203,000$

$$197,500$

$$238,000$

$$194,000$

Required information

$On$ January $1,2022,$ Pride Corporation purchased $90$ percent $of$ the outstanding voting shares $of$ Star, Incorporated, for

$$540,000$ cash. The acquisition$-$date fair value $of$ the noncontrolling interest was $$60,000.At$ January $1,2022,$ Star's net

assets had a total carrying amount $of$ $$420,000.$ Equipment $(eight-$year remaining life$)$ was undervalued $on$ Star's financial

records $by$ $$80,000.$ Any remaining excess fair value over book value was attributed $to$ unpatented technology developed

$by$ Star $(four-$year remaining life$),$ but not recorded $on$ its books. Star recorded net income $of$ $$70,000in2022$ and

$$80,000in2023.$ Each year since the acquisition, Star has declared $a$ $$20,000$ dividend. $At$ January $1,2024,$ Pride's

retained earnings show $a$ $$250,000$ balance.

Selected account balances for the two companies from their separate operations were $as$ follows:

Multiple Choice

$$315,000$

$$286,000$

$$250,000$

$$360,000$