On January 1, 2020, French Company acquired 60 percent of K-Tech Company for $306,000 when K-Techs book value was $406,000. The fair value of the newly comprised 40 percent noncontrolling interest was assessed at $204,000. At the acquisition date, K-Tech's trademark (10-year remaining life) was undervalued in its financial records by $80,000. Also, patented technology (5-year remaining life) was undervalued by $24,000.

In 2020, K-Tech reports $24,000 net income and declares no dividends. At the end of 2021, the two companies report the following figures (stockholders equity accounts have been omitted):

	French Company Carrying Amounts				K-Tech Company Carrying Amounts				K-Tech Company Fair Values
Current assets	$	622,000			$	302,000			$	322,000
Trademarks		262,000				202,000				282,000
Patented technology		412,000				152,000				176,000
Liabilities		(392,000	)			(122,000	)			(122,000	)
Revenues		(902,000	)			(402,000	)
Expenses		498,000				302,000
Investment income		Not given

Note: Parentheses indicate a credit balance.

What is the 2021 consolidated net income before allocation to the controlling and noncontrolling interests?

Multiple Choice

$504,000.

$404,000.

$496,320.

$491,200.