Paggle Corporation owns 80% of Spillway Inc.'s common stock that was purchased at its underlying book value. At the time of purchase, the book value and fair value of Spillway's net assets were equal. The two companies report the following information for 2014 and 2015.

During 2014, one company sold inventory to the other company for $50,000 which cost the transferor $40,000. As of the end of 2014, 30% of the inventory was unsold. In 2015, the remaining inventory was resold outside the consolidated entity.

2014 Selected Data:PaggleSpillwaySales Revenue$600,000$320,000Cost of Goods Sold320,000155,000Other Expenses100,00089,000Net Income$180,000$76,000Dividends Paid19,00002015 Selected Data:PaggleSpillwaySales Revenue$580,000$445,000Cost of Goods Sold300,000180,000Other Expenses130,000171,000Net Income$150,000$94,000Dividends Paid16,0005,000

If the sale referred to above was a downstream sale, the total sales revenue reported in the consolidated income statement for 2014 would be

a.$870,000.

b.$880,000.

c.$920,000.

d.$970,000.

a.$3,000

b.$10,000

c.$14,000

d.$20,000

For 2014, consolidated net income will be what amount if the intercompany sale was downstream?

a.$180,000

b.$253,000

c.$256,000

d.$259,000

If the intercompany sale mentioned above was an upstream sale, what will be the reported amount of total consolidated sales revenue for 2015?

a.$1,025,000

b.$1,900,000

c.$1,950,000

d.$2,000,000