Question $7$

Worth Corporation acquired all the common shares of Net Inc. on December $31,2023,$ when Net's retained earnings was $$1,200,000.$ Two of Net's

assets had a fair value different from carrying value: a building, and a patent. At acquisition, the building's fair value was greater than the carrying

value by $$80,000$ and had an estimated useful life of $8$ years. The patent's fair value was greater than the carrying value by $$140,000$ and had an

estimated useful life of $7$ years. Worth accounts for its investment in Net using the cost method. The following are excerpts from the separate$-$entity

statements as of December $31,2026$:

Net income

Dividends declared and paid on Nov $15,2026$

Opening retained earnings$-$January $1,2026$

Which amount represents consolidated net income for the year ending December $31,2026?$

$$840,000$

$$640,000$

$$900,000$

$$670,000$