Large Company Owns 80 Per Cent of the Issued Capital

Multiple Choice

Large Company owns 80 per cent of the issued capital of Smaller Company and Large Company owns 60 per cent of the issued capital of Medium Company.The three companies form an economic entity for the purposes of consolidated accounts.During the period Smaller Company sold inventory to Medium for $400,000.Medium sold the same inventory to Large for $560,000 and Large sold it to an entity external to the group for $760,000.What are the sales revenue reported in the consolidated statements for this item?

A) $1,416,000
B) $1,720,000
C) $760,000
D) $400,000
E) None of the given answers.