Lucky Corporation acquired an 80% interest in Tucker Corporation on January 1, 2016, when the book values of Tucker's assets and liabilities were equal to their fair values. The cost of the 80% interest was equal to 80% of the book value of Tuckers's net assets. During 2016, Lucky sold merchandise that cost $15,000 to Tuckerfor a profit of $6250.On December 31, 2016, one halfof the merchandise acquired from Lucky remained in Tucker's inventory. Separate incomes (investment income not included) of the two companies are as follows:

LuckyTucker

Sales$180,000$160,000

Cost of Goods Sold120,00090,000

Operating Expenses17,00021,000

Separate incomes$ 43,000$ 49,000

The consolidated income statement for Lucky Corporation and subsidiary for the year ended December 31, 2014 will show consolidated cost of goods sold of:

A. $120,000

B. $136,000

C. $198,125

D. $210,000