1. ABC Co. owns a 40% interest in XYZ Ltd., a joint venture. Information for these two entities for the year ended July 31, 20X4, is as follows:

Sales	ABC Co. $5,000,000	XYZ Ltd. $3,900,000
Net income	1,500,000	800,000

During the year, XYZ had sales of $20,000 to ABC and earned a gross margin of 40% on these sales. At year end, ABC had resold 50% of these goods.

During the year, ABC had sales of $60,000 to XYZ and earned a gross margin of 50% on these sales. At year end, none of these goods had been resold.

Both companies tax rate is 30%.

What will be the total sales reported on Abbas final statement of income and comprehensive income for the year ended July 31, 20X4?

a) $4,940,000

b) $5,000,000

c) $6,480,000

d) $6,560,000