Use the following information to answer problems $3-10$ to $3-12($Static$)($LO $3-3$a$)$

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On January $1,2022,$ Palmcroft Company acquired $100$ percent of the outstanding voting shares of Salt River, Incorporated, for $$600,000$ cash. At January $1,2022,$ Salt River$$s net assets had a total carrying amount of $$420,000.$ Equipment $($eight$-$year remaining life$)$ was undervalued on Salt River$$s financial records by $$80,000.$ Any remaining excess fair over book value was attributed to a database developed by Salt River $($four$-$year remaining life$),$ but not recorded on its books. Palmcroft applies the equity method to account for its investment in Salt River. Each year since the acquisition, Salt River has declared a $$20,000$ dividend. Salt River recorded net income of $$70,000$ in $2022$ and $$80,000$ in $2023.$

Selected account balances from the two companies$$ individual records were as follows:

ItemPalmcroftSalt River$2024$ Revenues$ $498,000$$ $285,0002024$ Expenses$350,000195,0002024$ Income from Salt River$55,000-$Retained earnings, $12/31/24250,000175,000$

Problem $3-10($Static$)($LO $3-3$a$)$

What is consolidated net income for Palmcroft and Salt River for $2024?$

Multiple Choice

$$203,000$

$$148,000$

$$228,000$

$$238,000$