On January 10, 2020, PT A acquired 80 percent ownership of PT B, at underlying book value. The fair value of the noncontrolling interest at the date of acquisition was equal to 20 percent of the book value of PT B. On April 20, 2020, PT A purchased inventory from PT B for $120,000. PT A sold the entire inventory to an unaffiliated company for $150,000 on Desember 10, 2020. PT B had produced the inventory sold to PT A On January 10, 2020, PT A acquired 80 percent ownership of PT B, at underlying book value. The fair value of the noncontrolling interest at the date of acquisition was equal to 20 percent of the book value of PT B. On April 20, 2020, PT A purchased inventory from PT B for $120,000. PT A sold the entire inventory to an unaffiliated company for $150,000 on Desember 10, 2020. PT B had produced the inventory sold to PT A for $92,000. The companies had no other transactions during 2020. What eliminating entry is needed in preparing consolidated financial statements for 2020 to remove all effects of the intercompany sale?

a. Debit to Sales for $120,000 and credit to Cost of Good Sold for $92,000 & Inventory for 28,000.

b. Debit to Sales for $120,000 and credit to Cost of Good Sold for $120,000.

c. No entry

d. Debit to Sales for $150,000 and credit to Cost of Good Sold for $150,000.