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Patti Company owns 8 0 % of the common stock of Shannon, Inc. In the current year, Patti reports sales of $ 1 0 ,

Patti Company owns 80% of the common stock of Shannon, Inc. In the current year, Patti reports sales of $10,000,000 and cost of goods sold of $7,500,000. For the same period, Shannon has sales of $250,000 and cost of goods sold of $160,000. During the year, Patti sold merchandise to Shannon for $110,000 at a price based on the normal markup. At the end of the year, Shannon still possesses 30 percent of this inventory. Compute consolidated sales.
a. $10,210,000.
b. $10,140,000.
c. $10,060,000.
d. $10,260,000.
e. $10,240,000.
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