You were given the following information for the Unadjusted Income Statements for Parent Inc. and Sub Inc. for December 31, 2021 Parent Inc. Sub Inc. Sales Revenue $1,000,000 $500,000 Cost of Goods Sold $600,000 $300,000 Depreciation Expense $40,000 $20,000 Net Income Before Tax $360,000 $180,000 You were advised that Parent acquired Sub on January 1, 2021. On that date, the acquisition differential was $75,000.

Question:

Assume Parent owns 100% of Sub. Also further assume the percentage breakdown of acquisition differential on the acquisition date was as follows: 15% was allocated to inventory for which on the date of acquisition the fair value was greater than book value the remaining 85% was attributable to Goodwill

Required: Calculate the adjusted Consolidated Net income before Tax. You do NOT need to prepare a complete income statement, but be sure you show how you reached solution number.