On 1/1/2018 XYZ acquired 80% of the outstanding stock of ABC For 2019, XYZ reported sales revenues of $1,000,000, cost of goods sold $800,000; while ABC reported sales revenue of $700,000, cost of goods sold $420,000. Assume that ABC sold inventory to XYZ at a markup equal to 25% of cost. Intra-entity transfers were $150,000 in 2018 and $120,000 in 2019. of this inventory, $30,000 of the 2018 transfers were retained and then sold by XYZ in 2019, while $50,000 of the 2019 transfers was held until 2020, What is the consolidated cost of goods sold? a. $1,100,000 b. $1,225,000 c. $1,220,000 d. None of the answers is correct e. $1,075,000