A subsidiary sells merchandise to its parent at a markup of 25% on cost. In the current year, the parent paid $800,000 for merchandise received from the subsidiary. By year-end, the parent had sold $625,000 of the merchandise to outside customers for $850,000, but still holds the other $175,000 in its ending inventory. Which statement is false concerning the information related to these merchandise sales, as reported on the consolidated financial statements for the current year?

	A.	Consolidated ending inventory is $140,000.
	B.	Consolidated cost of goods sold is $500,000.
	C.	Consolidated sales are $850,000.
	D.	Eliminating entries on the consolidation working paper reduce cost of goods sold by a net amount of $800,000.