A subsidiary sells merchandise to its parent at a markup of 25% on cost. In 2020, the parent paid $500,000 for merchandise received from the subsidiary. By year-end 2020, the parent has sold $400,000 of the merchandise to outside customers for $450,000, but still holds the other $100,000 in its ending inventory. Which statement is true concerning how this information should be reported on the 2020 consolidated financial statements?

Consolidated sales should be $450,000.

The consolidated ending inventory balance should be $100,000.

Consolidated cost of goods sold should be $400,000.

Consolidated cost of goods sold should be $720,000.