Top Company holds 90 percent of Bottom Company’s common stock. In the current year, Top reports sales of $902,000 and cost of goods sold of $676,500. For this same period, Bottom has sales of $302,000 and cost of goods sold of $181,200. During the current year, Bottom sold merchandise to Top for $184,000. The parent still possesses 30 percent of this inventory at the current year-end. Bottom had established the transfer price based on its normal gross profit rate. What are the consolidated sales and cost of goods sold?
Multiple Choice
$1,020,000 and $692,100.
$1,020,000 and $728,900.
$1,020,000 and $695,780.
$989,800 and $879,780.
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