On January 1, 2021, Gary Corp. sold equipment to Perez Inc. (a wholly-owned subsidiary) for $193,000 in cash. The equipment originally cost $158,000 but had a book value of only $109,000 when transferred. On that date, the equipment had a four-year remaining life. Depreciation expense was calculated using the straight-line method.

Gary earned $325,000 in net income in 2021 (not including any investment income) while Perez reported $137,000. Assume there is no amortization related to the original investment.

What is consolidated net income for 2021?