2 Pliable Company holds 75% of Stiff Company stock. Pliable has transferred inventory to Stiff Company as follows: Percent of Transferred Sales Inventory Cost to Price to Held at Year Pliable Stiff Year end 2018 $203,000 $355,000 30% 2019 $208,000 $312,000 45% 2020 2021 $120,000 $150,000 $150,000 $250,000 40% 20% The following balances were included in the individual financial statements of each company for the year ended 12/31/2021: Pliable Stiff Sales $ 7,800,000 3,600,000 Cost of goods sold Merch. inventory $ 3,490,000 2,320,000 $ 610,000 380,000 a. What will be reported as consolidated sales in the year 2021? b. What will be reported as consolidated inventory at 12/31/2021? c. What will be reported as consolidated cost of goods sold for 2021? d. Were the intra-entity sales of inventory items upstream or downstream? Problem 2 Part c is not right, but I cannot help you because you do not show any details. You need the unrealized gain from both the G* and G entries. It would help if you looked at the G*, TI and G entries to see how they affect consolidated CGS. C. Pliable 610,000 Stiff 380,000 COGS OF sales -62,500 Total COGS 927,500 Consolidated cost of goods sold is $927,500