Macaw Owned 100% of Flamingo for the Entire Year

Macaw owned 100% of Flamingo for the entire year.Macaw uses the accrual method of tax accounting, whereas Flamingo uses the cash method.During the year, Flamingo sold raw materials to Macaw for $10,000 under a contract that requires no payment to Flamingo until the following year. Exclusive of this transaction, Macaw had income for the year of $90,000, and Flamingo had income of $40,000.The group's consolidated taxable income for the year is:

A) $120,000.
B) $130,000.
C) $140,000.
D) Some other amount.
E) Cannot be determined.