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Eadias Corp., a cash basis taxpayer, and Eastes Corp., an accrual basis taxpayer, are parent-subsidiary corporation. During year 3, Eadias bought and paid for $150,000

Eadias Corp., a cash basis taxpayer, and Eastes Corp., an accrual basis taxpayer, are parent-subsidiary corporation. During year 3, Eadias bought and paid for $150,000 in supplies from Eastes. Additionally, on December 1 or year 3, the two corporations entered into an agreement whereby Eadias would provide consulting services to Eastes, with each month's services being payable on the 15th day of the following month. During December of year 3, Eadias provided services under this agreement worth $20,000, Including all of the above transactions, Eadias 's taxable income for the year amounted to $510,000, while Eastes's amounted to $250,000. How much taxable income should Eadias and Eastes report on the year 3 consolidated tax return?

$760,000

$610,000

$780,000

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