2. A subsidiary sells merchandise to its parent at a markup of 30% on cost. In 2014, the parent paid $1,040,000 for merchandise received from the subsidiary. By year-end 2014, 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 information reported on the 2014 consolidated financial statements?

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

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

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

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