Big Company purchased 60 percent ownership of Small Corporation in 20X1.

Big purchased the inventory from unrelated parties for $42,000 in 20X1. Big sold that inventory to Small for $60,000 in 20X2.

Small sold 75% of the inventory they purchased from Small to an unaffiliated company for $86,000 on November 10, 20X2. Small still owns the other $15,000 (25%) of that inventory.

The companies had no other transactions during 20X2.

1. What will the consolidated group report as sales revenue for 20X2?

2. What will the consolidated group report as the sub-total gross margin for 20X2? (I want that line item from an income statement, not a %)