The financial statements of Wood Company and Furniture Company on December 31, Year 5. were as follows: BALANCE SHEETS Assets Cash Accounts receivable Inventories Equipment (net) Buildings (net) Investment in Furniture (at cost) Wood $ 50,000 250,000 3, e82,888 6,150,000 2,600,000 850,000 $12,980,000 Furniture $ 10,888 100,000 520,880 2,500,000 500,000 $3,630,888 Liabilities and shareholders' Equity Current liabilities Long-term liabilities Common shares Retained earnings $ 380,000 4,080,888 3, eee, 5,600,000 $12,980,000 $ 170, eee 1,188,888 500, eee 1,860,888 $3,630,822 STATEMENTS OF INCOME AND RETAINED EARNINGS Wood Sales revenue $3,500,eee other revenues 380, eee 3,880, eee Cost of goods sold 1,700, eee selling and administrative expenses 300, eee other expenses 200, eee Income tax expense 300, eee $2,500, eee Net income 1,380, eee Retained earnings, beginning balance $4,500, eee 5,880, eee Dividends declared 200, eee Retained earnings, ending balance $5,680, eee Furniture $ 9ee, 280 30,000 930,000 330,000 180,000 150,000 70,000 650,000 280,000 $ 1,600,000 18,800,000 20,000 $ 1,860,000 Additional Information Wood owns 70 percent of Furniture and carries its Investment In Furniture on its books by the cost method. During Year 4. Wood sold Furniture $100,000 worth of merchandise, of which $60,000 was resold by Furniture in the year. During Year 5, Wood had sales of $300.000 to Furniture, of which 40 percent was resold by Furniture. Intercompany sales are priced to provide Wood with a gross profit of 30 percent of the sales price. On December 31, Year 4. Wood had In Its Inventorles $150,000 of merchandise purchased from Furniture during Year 4. On December 31, Year 5. Wood had in its ending Inventories $100,000 of merchandise that had resulted from purchases of $450,000 from Furniture during Year 5. Intercompany sales are priced to provide Furniture with a gross profit of 60 percent of the sale price. Both companies are taxed at 25 percent. What amount of sales revenue would appear on Woods's consolidated Income statement for the year ended December 31, Year 5? The financial statements of Post Company and Stamp Company on December 31. Year 5. were as follows: BALANCE SHEETS Assets Cash Accounts receivable Inventories Equipment (net) Buildings (net) Investment in stamp (at cost) Post $ 50,000 250,000 3, eee,888 6,150,000 2,600,000 850,888 $12,980,000 Stamp $ 10,000 100,000 520,000 2,500,000 500,000 $3,630,880 Liabilities and Shareholders' Equity Current liabilities Long-term liabilities Common shares Retained earnings $ 3ee, 688 4, eee, 600 3, eee,888 5,600,000 $12,980,000 $ 170,000 1,108,888 500,000 1,860,000 $3,638,888 STATEMENTS OF INCOME AND RETAINED EARNINGS Post Sales revenue $3,500, eee other revenues 300, eee 3,800, eee Cost of goods sold 1,780, eee selling and administrative expenses 309, eee other expenses 200, eee Income tax expense 309, eee $2,500, eee Net income 1,380, eee Retained earnings, beginning balance $4,500, eee 5,880, eee Dividends declared 200, eee Retained earnings, ending balance $5,680, eee stamp $ 9e0,000 30,000 930,000 330,000 180,000 150,000 70,000 $ 650,000 280,000 $ 1,600,000 18,800,000 20,000 $ 1,860,000 Additional Information Post owns 70 percent of Stamp and carries its Investment In Stamp on its books by the cost method. During Year 4. Post sold Stamp $100.000 worth of merchandise, of which $60,000 was resold by Stamp in the year. During Year 5. Post had sales of $200,000 to Stamp. of which 40 percent was resold by Stamp. Intercompany sales are priced to provide Post with a gross profit of 30 percent of the sales price On December 31, Year 4. Post had in its inventories $150,000 of merchandise purchased from Stamp during Year 4. On December 31. Year 5. Post had in its ending Inventories $100.000 of merchandise that had resulted from purchases of $350,000 from Stamp during Year 5. Intercompany sales are priced to provide Stamp with a gross profit of 60 percent of the sale price. Both companies are taxed at 25 percent. To calculate Post's consolidated cost of goods sold, the first step is to add together the unadjusted totals from Post's and Stamp's separate entity financial statements. What is the adjustment to this figure for unrealized profits in beginning Inventory for the year ended December 31, Year 5