Pop Company holds $90$ percent of Stop Company's common stock. In the current year, Pop reports sales of $$800,000$ and cost of goods sold of $$600,000.$ For this same period, Stop has sales of $$300,000$ and cost of goods sold of $$180,000.$ During the current year, Pop sold merchandise to Stop for $$100,000.$ The subsidiary still possesses $40$ percent of this inventory at the current year$-$end. Pop had established the transfer price based on its normal markup. What are the consolidated sales and cost of goods sold?

Question $12$ options:

a$)$

$$970,000$ and $$696,000$

b$)$

$$1,000,000$ and $$690,000$

c$)$

$$1,000,000$ and $$705,000$

d$)$

$$1,000,000$ and $$740,000$ Use the same information as in the previous question except assume that the transfers were upstream from Stop Company to Top Company. What are the consolidated sales and cost of goods sold?

Question $13$ options:

a$)$

$$970,000$ and $$712,000.$

b$)$

$$1,000,000$ and $$696,000.$

c$)$

$$1,000,000$ and $$720,000.$

d$)$

$$1,000,000$ and $$755,000.$