Top Company holds 90 percent of Bottom Company’s common stock. In the current year, Top reports sales of $1,040,000 and cost of goods sold of $624,000. For this same period, Bottom has sales of $540,000 and cost of goods sold of $340,000. During the current year, Top sold merchandise to Bottom for $340,000. The subsidiary still possesses 30 percent of this inventory at the current year-end. Top had established the transfer price based on its normal gross profit rate. What are the consolidated sales and cost of goods sold?
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