T Company owns 100 percent of C Company. The following are accounts from the balance sheets and income statements of both companies:

What would be the combined amount of each of the above accounts on the consolidated financial statements assuming the following additional information? (1) C Company sold to T Company merchandise at cost in the amount of $540,000; (2) T Company sold all the merchandise it bought from C Company to customers, but it still owes C Company $120,000 for the merchandise.

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T Company C Company Accounts receivable 460,000 300,000 180,000 2,400,000 1,780,000 Accounts payable Sales 360,000 Cost of goods sold1,420,000 1,080,000