A subsidiary sells merchandise to its parent at a markup of 30%
on cost. In 2017, the parent paid $1,040,000 for merchandise
received from the subsidiary. By year-end 2017, the parent has sold
$780,000 of the merchandise to outside customers for $850,000, but
still holds the other $260,000 in its ending inventory.

Which statement is true concerning the above information
reported on the 2017 consolidated financial statements?

A. Consolidated cost of goods sold should be $780,000.

B. The consolidated ending inventory balance should be
$200,000.

C. Consolidated cost of goods sold should be $800,000.

D. Consolidated sales should be $1,040,000.