Top Company holds 90 percent of Bottom Companys common stock. In the current year, Top reports sales of $1,000,000 and cost of goods sold of $800,000. For this same period, Bottom has sales of $500,000 and cost of goods sold of $300,000. During the current year, Top sold merchandise to Bottom for $300,000. The subsidiary still possesses 60 percent of this inventory at the current year-end. Top had established the transfer price based on its normal gross profit rate. What are the consolidated sales and cost of goods sold?

• $1,200,000 and $1,052,000.

• $1,200,000 and $872,000.

• $1,200,000 and $836,000.

• $1,150,000 and $908,000.