Advanced Accounting 10th Edition by Thomas Schaefer, Joe Ben Hoyle, Timothy Doupnik

Exercise 11

On January 1, Jarel acquired 80 percent of the outstanding voting stock of Suarez for $260,000 cash consideration.The remaining 20 percent of Suarez had an acquisition-date fair value of $65,000.On January 1, Suarez possessed equipment (5-year life) that was undervalued on its books by $25,000.Suarez also had developed several secret formulas that Jarel assessed at $50,000.These formulas, although not recorded on Suarez's financial records, were estimated to have a 20-year future life.
As of December 31, the financial statements appeared as follows: During the year, Jarel bought inventory for $80,000 and sold it to Suarez for $100,000.Of these goods, Suarez still owns 60 percent on December 31.
What is the total of consolidated cost of goods sold
a.$140,000.
b.$152,000.
c.$132,000.
d.$145,000.