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.

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

		$1,025,000
		$2,000,000
		$1,900,000
		$1,950,000

Data: aggle Sales Revenue $600,000 Sold 320,000 Other Expenses 100,000 Net Income Dividends Paid 19,000 Data: Sales Revenue $580,000 OS Sold 300,000 Other Expenses 130,000 Net Income Dividends Paid 16,000 $320,000 155,000 89,000 $180,000 $76,000 Paggle Spillwa $445,000 180,000 171,000 $150,000 $94,000 5,000