P Company regularly sells merchandise to its 80%-owned

P Company regularly sells merchandise to its 80%-owned subsidiary, S Corporation. In 2016, P sold merchandise that cost $240,000 to S for $300,000. Half of this merchandise remained in S’s December 31, 2016 inventory. During 2017, P sold merchandise that cost $375,000 to S for $468,000. Forty percent of this merchandise inventory remained in S’s December 31, 2017 inventory. Selected income statement information for the two affiliates for the year 2017 is as follows: P S Sales Revenue $2,250,000 $1,125,000 Cost of Goods Sold 1,800,000 937,500 Gross profit $450,000 $187,500 Consolidated sales revenue for P and Subsidiary for 2017 are:

a) $2,907,000. 

b) $3,000,000. 

c) $3,205,500. 

d) $3,375,000.