Calculating Consolidated Sales and Cost of Sales During 2006, Sora Inc., an 80%-owned sub¬

sidiary, sold inventory costing $420,000 to Pora Inc., its parent, at the same mark-up percentage as sales to third parties. As of 12/31/06, Pora reported $90,000 in its balance sheet for intercompanyacquired inventory. Information regarding total sales for both entities follows:

Pora Inc. Sora Inc.

Sales . $ 4,000,000 $1,100,000 Cost of sales . (1,400,000) (770,000)

Gross Profit . $ 2,600,000 $ 330,000 1. What is the reportable consolidated sales amount for 2006?

2. What is the reportable consolidated cost of sales amount for 2006?