P Company regularly sells merchandise to its 80%-owned subsidiary, S Corporation. In 2016, P sold merchandise that cost $240,000 to S for $300,000. Half of this merchandise remained in Ss December 31, 2016 inventory. During 2017, P sold merchandise that cost $375,000 to S for $468,000. Forty percent of this merchandise inventory remained in Ss December 31, 2017 inventory. Selected income statement information for the two affiliates for the year 2017 is as follows:

	P		S
Sales Revenue		$2,250,000		$1,125,000
Cost of Goods Sold		1,800,000		937,500
Gross profit		$450,000		$187,500

Consolidated sales revenue for P and Subsidiary for 2017 are:

:A. $2,907,000. B. $3,205,500. c. 3,000,000