On January $2,2023,$ Quepasa Inc. acquired $100\%$ of the voting common shares of Strauss Corporation for $$340,000$ cash. At that time, the shareholders' equity of Strauss consisted of $$120,000$ in common shares and $$90,000$ in retained earnings. The fair values of all assets and liabilities were equal to the carrying value with the exception of inventory and building. The inventory's fair value was $$50,000$ in excess of the carrying value. The building's fair value was $$100,000$ less than the carrying value and had a remaining useful life of $8$ years.

Quepasa uses the cost method to account for its investment in Strauss. In $2024,$ goodwill was determined to be impaired by $$10,000.$ Both companies have a December $31$ year end. The following information relates to the year ending December $31,2025.$

Quepasa

Strauss

Net income

$ $650,000$

$ $475,000$

Dividends declared & paid

$290,000$

$150,000$

Which of the following amounts represents consolidated net income for the year ending December $31,2025?$

Question $7$ options:

$$927,500$

$$1,127,500$

$$962,500$

$$987,500$