On January 1, 20X1, Picture Company acquired 70% ownership of Seven Corporation at underlying book value. The fair value of the noncontrolling interest at the date of acquisition of the book value of Seven Corporation. An April 20X1, Seven purchased inventory from Picture for $45,000. Seven sold the entire inventory to an unaffiliated company for $58,000 on October 1 20X1 produced the inventory sold to Seven for $38,000. The companies had no other transactions during 20X1.

What amount of sales will be reported in the 20X1 consolidated income statement?

a. 45,000 b. 13,000 c. 38,000 d. 58,000