As of the end of Year 1, Terrific Timber reported its timber resources at fair value less cost to sell of $5,000,000. During Year 2, 20% of the timber was harvested. $200,000 in production costs were incurred to convert the harvested timber into lumber that is ready for sale. 30% of the lumber was sold during Year 2. What did Terrific Timber report as cost of goods sold in Year 2? a) $1,200,000 b) We cannot determine this amount without more information c) $200,000 d) $360,000