MAX Inc. purchased 80% of the voting shares of MIN Inc for $750,000 on January 1, 2018. On that date, MAX's common shares and retained earnings were valued at $300,000 and $150,000 respectively. Unless otherwise stated, assume that MAX uses the cost method to account for its investment in MIN Inc. MIN's fair values approximated its carrying values with the following exceptions: MIN's trademark had a fair value which was $80,000 higher than its carrying value. MIN's bonds payable had a fair value which was $30,000 higher than their carrying value. The trademark had a useful life of exactly twenty years remaining from the date of acquisition. The bonds payable mature on January 1, 2038. Both companies use straight line amortization exclusively. The financial statements of both companies for the year ended December 31, 2020 are shown below: Income Statements

	MAX Inc.	MIN Inc.
Sales	$640,000	$520,000
Other Revenues	$460,000	$160,000
Less: Expenses
Cost of Goods Sold	$480,000	$390,000
Depreciation Expense	$40,000	$20,000
Other Expenses	$80,000	$40,000
Income Tax Expense	$250,000	$115,000
Net Income	$250,000	$115,000

Retained Earnings Statements

	MAX Inc.	MIN Inc.
Balance, January 1, 2020	$200,000	$350,000
Net Income	$250,000	$115,000
Less: Dividends	($50,000)	($65,000)
Retained Earnings, Dec 31, 2020	$400,000	$400,000
Balance Sheets
	MAX Inc.	MIN Inc.
Cash	$100,000	$150,000
Accounts Receivable	$150,000	$150,000
Inventory	$200,000	$150,000
Investment in MIN Inc.	$750,000
Equipment (net)	$300,000	$150,000
Land		$100,000
Trademark		$300,000
Total Assets	$1,500,000	$1,000,000
Current Liabilities	$300,000	$150,000
Bonds Payable	$300,000	$150,000
Common Shares	$500,000	$300,000
Retained Earnings	$400,000	$400,000
Total Liabilities and Equity	$1,500,000	$1,000,000

Other Information: A goodwill impairment test conducted during August 2020 revealed that the MIN's goodwill amount on the date of acquisition had been impaired by $5,000. During 2019, MAX sold $60,000 worth of inventory to MIN, 80% of which was sold to outsiders during the year. During 2020, MAX sold inventory to MIN for $80,000. 75% of this inventory was resold by MIN to outside parties during that year. During 2019, MIN sold $40,000 worth of Inventory to MAX, 80% of which was sold to outsiders during the year. During 2020, MIN sold inventory to MAX for $50,000. 80% of this inventory was resold by MAX to outside parties during that year. On April 1, 2020, MAX sold land to MIN for $100,000. MAX originally acquired the land for $40,000 in 2015. All intercompany sales as well as sales to outsiders are priced 25% above cost. The effective tax rate for both companies is 50%. Compute MAX's Consolidated Net Income for 2020.