Use the following information to answer questions 8, 9, and 10.

Wren corporation acquired 80% ownership of Arid Incorporated, at a time when Wren's investment (using the equity method) and Arid's book values were equal. During 2017, Wren sold goods to Arid for $200,000 making a gross profit percentage of 20%. Half of these goods remained unsold in Arid's inventory at the end of the year. Income statement information for Wren and Arid for 2017 was as follows:

Particulars	Wren	Arid
Sales Revenue	$1,000,000	$600,000
Cost of Goods Sold	500,000	400,000
Operating Expenses	250,000	80,000
Separate Incomes	$250,000	$120,000

8. The 2017 consolidated income statement showed cost of goods sold of

a. $720,000

b. $880,000

c. $900,000

d. $920,000

Please show all work