During the current year, a parent sold inventory priced at $800,000 to its subsidiary, and the parents profits on these sales amounted to $60,000. All inventory sold by the parent to the subsidiary was sold by the subsidiary to outside customers during the year. Here is what the parent and subsidiary report for total sales, cost of goods sold, and ending inventory at year-end (for total sales between the parent and subsidiary and to outside customers):

	Parents Books	Subsidiarys Books
Inventory	$ 300,000	$ 150,000
Sales revenue	5,000,000	3,500,000
Cost of goods sold	4,000,000	2,700,000

At what amounts should the years consolidated financial statements report these three balances?

Select one:

a. Inventory: $450,000; Sales Revenue: $8,500,000; Cost of Goods Sold: $6,700,000

b. Inventory: $450,000; Sales Revenue: $7,700,000; Cost of Goods Sold: $5,900,000

c. Inventory: $390,000; Sales Revenue: $7,700,000; Cost of Goods Sold: $5,900,000

d. Inventory: $150,000; Sales Revenue: $3,500,000; Cost of Goods Sold: $1,900,000