Top Company holds 90 percent of Bottom Companys common stock. In the current year, Top reports sales of $852,000 and cost of goods sold of $639,000. For this same period, Bottom has sales of $417,000 and cost of goods sold of $312,750. During the current year, Bottom sold merchandise to Top for $131,000. 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

• $1,138,000 and $873,150.

• $1,138,000 and $833,850.

• $1,138,000 and $838,220.

• $1,096,300 and $964,850.