I'm not sure about the answer, can someone explain it?

Top Company holds 90 percent of Bottom Company's common stock. In the current year, Top reports sales of $870,000 and cost of goods sold of $652,500. For this same period, Bottom has sales of $327,000 and cost of goods sold of $196,200. During the current year, Bottom sold merchandise to Top for $118,000. The parent still possesses 25 percent of this inventory at the current year-end. Bottom had established the transfer price based on its normal gross prot rate. What are the consolidated sales and cost of goods sold? Multiple Choice O $1,079,000 and $740,530. 0 $1,079,000 and $742,500. 0 $1,046,300 and $860,500. . $1,079,000 and $760,200