Proud Company and Slinky Company both produce and purchase equipment for resale each period and frequently sell to each other. Since Proud Company holds 60 percent ownership of Slinky Company, Proud's controller compiled the following information with regard to intercompany transactions between the two companies in 20X5 and 20x6: Year 20x5 20X5 20x6 20x6 Produced by Proud Company Slinky Company Proud Company Slinky Company Sold to Slinky Company Proud Company Slinky Company Proud Company Percent Resold to Nonaffiliate in 20x5 20X6 60% 40% 30 50 Cost to produce $100,000 70,000 40,000 200,000 Sale Price to Affiliate $150,000 100,000 60,000 240,000 Required: a. Prepare the consolidation entries required at December 31, 20X6, to eliminate the effects of the inventory transfers in preparing a full set of consolidated financial statements. (If no entry is required for a transaction/event, select "No journal entry required in the first account field.) view transaction list Consolidation Worksheet Entries A B C D Record the entry to eliminate the beginning inventory profit of Proud Company. Note: Enter debits before credits. Entry Accounts Debit Credit Record entry Clear entry view consolidation entries b. Compute the amount of cost of goods sold to be reported in the consolidated income statement for 20X6. (Do not round intermediate calculations.) Cost of goods sold