Required information Port Company (Port) purchased 70% of the voting shares of Sail Ltd. (Sail) for $630,000 on January 1, 2021. On that date, Sail's common shares and retained earnings were valued at $300,000 and $150,000 respectively. Unless otherwise stated, assume that Port uses the cost method to account for its investment in Sail. Sail's fair values approximated its carrying values with the following exceptions: The trademark had a fair value which was $80,000 higher than its carrying value. The bonds payable had a fair value which was $30,000 higher than their carrying value. The trademark had a useful life of twenty years remaining from the date of acquisition. The bonds payable mature on January 1, 2041. Both companies use straight line amortization exclusively. The financial statements of both companies for the year ended December 31, 2023 are shown below: Income Statements Port Sail Sales Other revenues $640,000 460,000 $520,000 160,000 Less: expenses Cost of goods sold 480,000 390,000 Depreciation expense 40,000 20,000 Other expenses Income tax expense Net income 80,000 40,000 250,000 115,000 $250,000 $115,000 Retained Earnings Statements Balance, January 1, 2023 Net income Less: dividends Retained Earnings, Dec 31, 2023 Port $420,000 Sail $330,000 115,000 250,000 (50,000) (65,000) $620,000 $380,000 Balance Sheets Port Sail Cash Accounts receivable Inventory $100,000 $90,000 270,000 190,000 350,000 110,000 Investment in Sail 630,000 Equipment (net) 520,000 150,000 Land Trademark 100,000 300,000 Total assets $1,870,000 $940,000 Current liabilities $300,000 $110,000 Bonds payable 450,000 150,000 Common shares 500,000 300,000 Retained earnings 620,000 380,000 Total liabilities and equity $1,870,000 $940,000 Other Information: A goodwill impairment test conducted in 2023 revealed that Sail's goodwill amount on the date of acquisition had been impaired by $5,000 During 2022, Port sold $60,000 worth of inventory to Sail, 80% of which was sold to outsiders during the year. During 2023, Port sold inventory to Sail for $80,000. 75% of this inventory was resold by Sail to outside parties during that year. During 2022, Sail sold $100,000 worth of inventory to Port, 70% of which was sold to outsiders during the year. During 2023, Sail sold inventory to Port for $120,000. 60% of this inventory was resold by Port to outside parties during that year. On April 1, 2023, Port sold land to Sail for $190,000. Port originally acquired the land for $40,000 in 2015. All intercompany sales as well as sales to outsiders are priced 25% above cost. The effective tax rate for both companies is 50%. Assume that any gain on the sale of land is fully taxable. Compute Port's consolidated net income for 2023.