During year 1, ABC Corp. sold goods to its 60% - owned subsidiary, DEF Corp. At December 31, year 1, one - half of these goods were included in DEF’s ending inventory. Reported Year 1 selling expenses were $1,000,000 and $500,000 for ABC and DEF, respec tively. ABC's selling expenses included $80,000 in freight - out costs for goods sold to DEF. What amount of selling expenses should be reported in ABC's year 1 consolidated income statement? a. $1,480,000 b. $1,450,000 c. $1,420,000 d. $1,400,000