P Co acquired an 80% interest in S Co on1/1/2014, when the book values of 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 S net assets. During 2014,P sold merchandise that cost $70,000 to S for $86,000. On 31/12/2014, three-fourths of the merchandise acquired from P remained in S inventory. Separate incomes (investment income not included) of the two companies are as follows: P S Sales Revenue $180,000 $160,000 Cost of Goods Sold 120,000 90,000 Operating Expenses 17,000 21,000 Separate incomes $ 43,000 $ 49,000 The consolidated income statement for P Corporation and subsidiary for the year ended 31/12/2014 will show consolidated cost of sales of Select one: a. $210,000 b. $ 120,000 c. $136,000 d. $148,000