Select the correct answer for each of the following questions.
Blue Company purchased 60 percent ownership of Kelly Corporation in 20X1. On May 10. 20X2, Kelly purchased inventory from Blue for \(\$ 60,000\). Kelly sold all of the inventory to an unaffiliated company for \(\$ 86,000\) on November 10, 20X2. Blue Company produced the inventory sold to Kelly for \(\$ 47,000\). The companies had no other transactions during 20X2.
1. What amount of sales will be reported in the \(20 \times 2\) consolidated income statement?

a. \(\$ 51.600\).

b. \(\$ 60.000\).

c. \(\$ 86,000\).

d. \(\$ 146,000\).
2. What amount of cost of goods sold will be reported in the \(20 \times 2\) consolidated income statement?

a. \(\$ 36,000\).

b. \(\$ 47,000\).

c. \(\$ 60,000\).

d. \(\$ 107,000\).
3. What amount will be reported as consolidated net income for \(20 \times 2\) :

a. \(\$ 13,000\).

b. \(\$ 26,000\).

c. \(\$ 28,600\).

d. \(\$ 39,000\).