Top Company holds 90 percent of Bottom Companys common stock. In the current year, Top reports sales of $876,000 and cost of goods sold of $657,000. For this same period, Bottom has sales of $317,000 and cost of goods sold of $174,350. During the current year, Bottom sold merchandise to Top for $149,000. 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?

$1,044,000 and $741,950.

$1,044,000 and $702,220.

$1,012,300 and $858,170.

$1,044,000 and $709,170.