E3-9 Calculate consolidated net income one year after acquisition Patta and Qira Corporations’ income statements for 2016 are summarized as follows (in thousands):

Patta Qira Sales $7,500 $2,500 Cost of Sales (3,200) (1,000)

Depreciation expense (500) (200)

Other expense (1,280) (500)

Net Income $2,520 $800 Patta Corporation paid $2,000,000 in cash for a 90 percent interest in Qira Corporation on December 31, 2015, and subsequently discovered undervalued equipment, with a three-year remaining useful life, of $120,000.

REQuIRED: Calculate the consolidated net income of Patta Corporation and Subsidiary for 2016.