Phone Inc. owns 80% of Smart Inc.'s common stock. Phone prices its products at cost plus a 40% markup. Smart prices its products at cost plus a 20% markup. At the end of 2020, Phone and Smart reported the following partial operating results and inventory balances. The total sales reported by Phone and Smart include both intercompany sales and sales to nonaffiliates. Phone Smart Total sales $1,320,000 $1,020,000 Sales to Smart 280,000 Sales to Phone 480,000 Net income 40,000 Operating income (excluding investment income from Smart) 140,000 Inventory on hand, December 31, 2020: purchased from Smart 96,000 purchased from Phone Identify the following statements that are TRUE. 84,000 The inventory reported in the December 31, 2020, consolidated balance sheet is $180,000 The sales reported in the 2020 consolidated income statement is $2,340,000. The consolidation entry to eliminate the sales by Phone to Smart includes a debit to Sales of $280,000, a credit to Cost of Goods of Sold of $256,000, and a credit to Inventory of $24,000. wy The consolidation entry to eliminate the sales by Smart to Phone includes a debit to Sales of $480,000, a credit to Cost of Goods of Sold of $464,000, and a credit to Inventory of $16,000. am