Problem 5-6 (LO 5-2, 5-3, 5-5) Top Company holds 90 percent of Bottom Company's common stock. In the current year, Top reports sales of $940,000 and cost of goods sold of $705,000. For this same period, Bottom has sales of $394,000 and cost of goods sold of $236,400. During the current year, Bottom sold merchandise to Top for $145,000. The parent still possesses 40 percent of this inventory at the current year-end. Bottom had established the transfer price based on its normal gross profit rate. What are the consolidated sales and cost of goods sold? Multiple Choice $1,149,600 and $964,600. $1,189,000 and $819,600. $1,189,000 and $815,730. $1,189,000 and $854,400