On 1/1/2X, Crimson Co. sold inventory to Countess, Inc. for $120,000 cash that had a cost of $40,000. Countess, Inc. subsequently sold half that inventory during the year at a sales price of $300,000 to unrelated third parties. Crimson Co. and Countess, Inc. are related companies subject to consolidation. The portion of the elimination entry at the time of consolidation to account for any required adjustment to the cost of goods sold account would be:

Question 24 options:

a)	Credit to Cost of Goods Sold of $200,000

b)	Credit to Cost of Goods Sold of $80,000

c)	Debit to Cost of Goods Sold of $70,000

d)	Credit to Cost of Goods Sold of $40,000