On January $1,2020,$ Pi$$ata Limited $($Pi$$ata$)$ acquired $7,000(70\%)$ of the outstanding ordinary shares of Salud Company $($Salud$)$ for $$350,000$ cash. On that date, Salud's shareholders' equity included $$100,000$ of ordinary shares and $$140,000$ in retained earnings. Also on that date, the carrying amount of each of Salud's identifiable assets and liabilities was equal to its fair value except for the following:

Carrying amount

Fair value

Inventory

$$55,000$

$$65,000$

Land

$100,000$

$130,000$

Equipment

$60,000$

$30,000$

Long$-$term liabilities

$110,000$

$120,000$

Goodwill

$50,000$

$?$

The equipment had an estimated useful life of $5$ years on January $1,2020.$ The inventory was sold during $2020.$ The long$-$term liabilities were to mature on December $31,2024.$ Any fair value difference is to be amortized under the straight$-$line method.

Additional Information:

The goodwill impairment losses that occurred in $2020$ and $2022$ were $$12,000$ and $$14,000,$ respectively.

During $2021,$ Pi$$ata sold goods costing $$40,000$ to Salud for $$80,000$; of these, $60\%$ were sold by Salud to external customers in $2021.$

In $2022,$ Salud sold goods costing $$80,000$ to Pi$$ata for $$140,000$; of these, $75\%$ were sold by Pi$$ata to external customers in $2022.$

Pi$$ata$\text{'}$s accounts payable at December $31,2022$ contain $$20,000$ owing to Salud for purchases of goods.

Pi$$ata charged Salud management fees totalling $$60,000$ during $2022.$ Salud owes Pi$$ata $$5,000$ of this amount for December $2022.$

In $2022,$ Pi$$ata declared and paid dividends of $$80,000.$ In $2022,$ Salud declared and paid dividends of $$60,000.$

On April $1,2021,$ Pi$$ata sold to Salud a machine for $$100,000.$ The net book value of the machine in Pi$$ata$\text{'}$s books was $$70,000.$ The machine had an expected life remaining of $6$ years at the date of the intercompany sale.

In June $2022,$ Pi$$ata sold a parcel of land to Salud for $$200,000.$ The land had a carrying value of $$150,000$ in Pi$$ata$\text{'}$s books.

The following are the separate entity Income Statements of Pi$$ata and Salud for the year ended December $31,2022$:

INCOME STATEMENT

Year ended December $31,2022$

Pi$$ata

Salud

Sales

$$1,100,000$

$$680,000$

Other revenue

$260,000$

$120,000$

Expenses:

Cost of goods sold

$605,000$

$374,000$

Depreciation$/$amortization expense

$92,000$

$56,000$

Selling and administrative expense

$148,000$

$196,000$

Interest expense

$56,000$

$32,000$

Income tax expense

$114,750$

$35,500$

Net income

$344,250$

$106,500$

What is the amount of consolidated interest expense for the year ended December $31,2022?$

Question $13$ options:

$$90,000$

$$30,000$

$$88,000$

$$86,000$