Assume zero tax rate. Phillies, Inc. acquired 100% of the assets of Lorenzen Corporation for $15,000,000 on 10/1/23 when the book value

and fair value of net assets of Lorenzen was $20,000,000 (no FV basis differences). For the entire year ended 12/31/23, Lorenzen

had the following income statement on a separate basis for the year ended 12/31/23 (including both pre and post acquisition income statements)

What is the TOTAL impact on pretax income in the Consolidated Income statement of Phillies due to the acquisition of Lorenzen in 2023?

\begin{tabular}{|c|c|c|c|c|} \hline & Q1 23 & Q2 23 & Q323 & Q423 \\ \hline Revenues & 4,000,000 & 4,500,000 & 4,600,000 & 4,700,000 \\ \hline Costs of sales & (3,000,000) & (3,300,000) & (3,400,000) & (3,500,000) \\ \hline Operating expenses & (900,000) & (1,000,000) & (1,050,000) & (1,000,000) \\ \hline Pretax income & 100,000 & 200,000 & 150,000 & 200,000 \\ \hline \end{tabular}