Use the following information to answer questions 3 through 6. Eagle Corporation owns 80% of Flyway Inc.'s common stock that was purchased at its underlying book value. The two companies report the following information for 2019 and 2020. During 2019, one company sold inventory to the other company for $50,000 which cost the transferor $40,000. As of the end of 2019, 30% of the inventory was unsold. In 2020, the remaining inventory was resold outside the consolidated entity. 2019 Selected Data: Sales Revenue Cost of Goods Sold Other Expenses Net Income Eagle $600,000 320,000 100.000 $180.000 Flyway $320,000 155,000 89,000 $ 76,000 Dividends Paid 19,000 0 2020 Selected Data: Sales Revenue Cost of Goods Sold Other Expenses Net Income Eagle $580,000 300.000 130.000 $150.000 Flyway $445,000 180,000 171,000 $ 94.000 Dividends Paid 16,000 5,000 3. a. If the sale referred to above was a downstream sale, the total sales revenue reported in the consolidated income statement for 2019 would be? $870,000. b. $880,000. $920,000. d. $970,000. c. 4. If the sale referred to above was a downstream sale, by what amount must Inventory be reduced to reflect the correct balance as of the end of 2019? a. $ 3,000. b. $10,000. c. $14,000. d. $20,000. 5. a. For 2019, consolidated net income will be what amount if the intercompany sale was downstream? $237.800.. b. $238,400. $256.000.. d. $253.000. C. 6. a. If the intercompany sale mentioned above was an upstream sale, what will be the reported amount of total sales revenue for 2020? $1,025,000. b. $975,000. c. $1,022,000. d. $1,015,000