A parent Company owns 100 percent of its Subsidiary. During 2015, the Parent company reports net income (by itself, without any investment income from its Subsidiary) of $500,000 and the subsidiary reports net income of $200,000. The parent had a bond payable outstanding on December 31, 2015, with a carrying value equal to $420,000. The subsidiary acquired the bond on December 31, 2015 for $395,000. During 2015, the Parent reported interest expense (related to the bond) of $35,000 while the subsidiary reported on interest income (related to the bond).

What is consolidated net income for the year ended December 31, 2015? (Please Show Work)