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On December 3 1 , 2 0 2 1 , Palani Palates Ltd . ( PPL ) issued 1 2 5 , 0 0 0

On December 31,2021, Palani Palates Ltd.(PPL) issued 125,000 common shares to acquire 100% of the common sharesof Soomin Sun Jung (SSL). On that date, PPL's shares were trading for $13.25 per share. On that date, the SSL assetsand liabilities had the following carrying and fair values:CashAccounts receivableInventoryEquipment, netLandTotal assetsAccounts payableBand payableCommon sharesRetained earringsTotal liabilities and shareholders' equityOn the date of acquisition:.Carrying value$ 65,000105,000295,0001,300,000275,0002.040,000The equipment had a remaining useful life of 8 years.Inventory on hand was sold by December 31,2022.$220,000470,000400,000950,000$ 2,040,000Fair value$65,000SSL's accounts receivable turns over every 42 days.The band payable matures in 5 years. Bond premiums and discounts are amortized using the straight-line method.Goodwill is tested for impairment each reporting period. In 2022, it was determined that goodwill was impairedby $9,000. In 2025, the goodwill was determined to be further impaired by $3,000.90,000395,0001,250,000450,000PPL$ 522,90075,0001,965,000$ 220,000500,000PPL uses the cost method to account for its investment in SSL. Below are excerpts from the December 31,2025separate entity financial statements of PPL and SSL:SSL$ 175,00025,0001,038,000Net incomeDividends declared and paid on Nov 15,2025Opening retained earnings-January 1,2025What is the consolidated net income figure for the year ending December 31,20257

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