In 2016, Company P recorded $800,000 of sales of inventory to its wholly owned subsidiary, Company S. The intercompany sales were on the same terms as sales made to third parties. At the end of 2016, 25% of the intercompany inventory remained in the ending inventory of Company S. Below is selected information from the 12/31/2016 separate financial statements of Company P and Company S:

At what amount should the cost of goods sold account be reported in the consolidated financial statements on 12/31/2016?

$1,820,000

$1,930,000

$2,620,000

$1,620,000