Worldwide Corporation acquired 85 percent of Small Town Company's voting shares of stock in 2014. During 2015, Worldwide purchased 45,000 widgets for $10 each and sold 18,000 of them to Small Town for $18 each. Small Town sold all of the units to unrelated entities prior to December 31, 2015, for $20 each. Both companies use perpetual inventory systems.

Which worksheet consolidating entry is needed in preparing consolidated financial statements for 2015 to remove all effects of the intercompany sale?

a)

Cost of Goods Sold180,000Sales180,000

b)

Sales324,000Cost of Goods Sold324,000

c)

Cost of Goods Sold324,000Sales324,000

d)

Sales180,000Cost of Goods Sold180,000