8. On January 1, 20X1, Pinto Company purchased an 80% interest in Sands Inc. for $1,000,000. The equity balances of Sands at the time of the purchase were as follows: Common stock ($10 par) Paid-in capital in excess of par Retained earnings $100,000 400,000 500,000 Any excess of cost over book value is attributable to goodwill. No dividends were paid by either firm during 20X6. The following trial balances were prepared for Pinto Company and its subsidiary, Sands Inc., on December 31, 20X6: Pinto Sands Cash Accounts receivable Inventory 120,000 70,000 240,000 197,000 200,000 176,000 Land Buildings and equipment Accumulated depreciation 600,000 180,000 1,100,000 800,000 (180,000) (120,000) Investment in Sands 1,000,000 Accounts payable (110,000) (50,000) Common stock, $10 par (800,000) (100,000) Paid-in capital in excess of (660,000) (400,000) par Retained earnings (1,340,000) (650,000) Sales (600,000) (300,000) Other income (40,000) (15,000) Cost of goods sold 320,000 180,000 Other expenses 150,000 32,000 Total Since the purchase date, Pinto has sold merchandise for resale to Sands, Inc. at a gross margin of 10%. Sales during 20X6 were $150,000. The inventory of these goods held by Sands was $15,000 on January 1, 20X6, and $18,000 on December 31, 20X6. Find cost of goods sold reported in a consolidated income statement for 20X6 (10 points)