Large Company Owns 80% of the Issued Capital of Smaller

Multiple Choice

Large Company owns 80% of the issued capital of Smaller Company and Large Company owns 60% 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