Parker Corp. owns 80% of Smith, Inc.s common stock. During the year, Parker sold Smith $250,000 of inventory on the same terms as sales made to third parties. Smith sold all of the inventory purchased from Parker during the year. The following information pertains to Smiths and Parkers sales for the year:\ Parker Smith\ Sales $1,000,000 $700,000\ Cost of sales 400,000 350,000\ Gross profit $600,000 $350,000\ \ What amount should Parker report as cost of sales in its consolidated income statement?\ Select one:\ a. $750,000\ b. $680,000\ c. $500,000\ d. $430,000\