Use the following information to answer g and h Find Corp. is a joint operation in which Seek Inc. has a 20% interest. The financial statements of both companies as at December 31, Year 3, are shown below. Income Statements: Sales Cost of Sales Other Expenses Net Income Seek Inc. $800,000 $400,000 $200.000 $200,000 Find Corp. $200,000 $100,000 $60.000 $40,000 Balance Sheets: Miscellaneous Assets Inventory Investment in Find Total Assets $600,000 $120,000 $180,000 $900,000 $300,000 $60,000 1 $360,000 Miscellaneous Liabilities Common Shares Retained Earnings Total Liabilities & Equity $160,000 $200,000 $540,000 $900,000 $80,000 $100,000 $180,000 $360,000 During Year 3, Seek sold merchandise totaling $120,000 to Find and recorded a gross profit of 50% on these sales. At the end of Year 3, Find's inventory contained $30,000 worth of merchandise purchased from Seck. Find also owed $50,000 to Seek at the end of Year 3. Both companies are subject to 40% tax rate. h. What is the total amount of cost of sales that would appear on the proportionately adjusted Income Statement? 1. $393,000 2. $396,000 3. $399,000 4. $420,000