Red Incorporated owns $80\%$ of White Company's outstanding common stock. Red reports cost of goods sold in the current year of $$425\mathrm{.}000$ while White

Company reports $$260,000.$ During the current year, Red Incorporated sells inventory costing $$125,000$ to White Company for $$187,500\mathrm{.}60\%$ of these goods

are not resold by White Company untll the following year. What is consolldated cost of goods sold?

Multiple Cholce

$$685,000$

$$497,500$

$$460,000$

$$535,000$

$$910,000$