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On January $1,$ Year $5,$ Pic Company acquired $7,500$ ordinary shares of Sic Company for $$627,000.$ On January $1,$ Year $6,$ Pic Company acquired an additional $2,000$ ordinary shares of Sic Company for $$196,000.$ On January $1,$ Year $5,$ the shareholders$$ equity of Sic was as follows:

Ordinary shares $(10,000$ no par value shares issued$)$ $ $200,000$

Retained earnings $345,000$

$ $545,000$

The following are the statements of retained earnings for the two companies for Years $5$ and $6$:

Pic Sic

Year $5$ Year $6$ Year $5$ Year $6$

Retained earnings, beginning of year $ $590,000$ $ $652,500$ $ $345,000$ $ $355,500$

Profit $162,500178,000100,500121,500$

Dividends $(100,000)(120,000)(90,000)(90,000)$

Retained earnings, end of year $ $652,500$ $ $710,500$ $ $355,500$ $ $387,000$

Additional Information

Pic uses the cost method to account for its investment in Sic.

Any acquisition differential is allocated to customer contracts, which are expected to provide future benefits until December $31,$ Year $7.$ Neither company has any customer contracts recorded on their separate$-$entity records.

There were no unrealized profits from intercompany transactions since the date of acquisition.

Required:

$($a$)$ Calculate consolidated profit attributable to Pic$$s shareholders for Year $6$

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