Assume that a parent company owns a 100% controlling interest in its long-held subsidiary. The following excerpts are from the parents and subsidiarys pre-consolidation income statements for the year ending December 31, 2016:

On January 1, 2016, the subsidiary held no inventories purchased from the parent. During the year ending December 31, 2016, the parent company sold $480,000 of inventory to its subsidiary. All of the parents sales to affiliates and non-affiliates have the same gross margin. The subsidiary sold to unaffiliated third party customers all of the items of inventory purchased from the parent.

	Parent	Subsidiary
Revenues	$2,520,000	$1,740,000
Cost of goods sold	(1,638,000)	(960,000)
Gross profit	$882,000	$780,000

Intercompany sales, no profits in ending inventory

What amount of revenues will be reported in the consolidated financial statements for the year ended December 31, 2016?

A. $3,550,000

B. $3,780,000

C. $3,300,000

D. $2,520,000