Use the Following Information for Questions 15 & 16

Multiple Choice

Use the following information for Questions 15 & 16:
P Company regularly sells merchandise to its 80%-owned subsidiary, S Corporation.In 2013, P sold merchandise that cost $240,000 to S for $300,000.Half of this merchandise remained in S's December 31, 2013 inventory.During 2014, P sold merchandise that cost $375,000 to S for $468,000.Forty percent of this merchandise inventory remained in S's December 31, 2014 inventory.Selected income statement information for the two affiliates for the year 2014 is as follows:
-Consolidated cost of goods sold for P Company and Subsidiary for 2014 are:

A) $2,260,500.
B) $2,268,000.
C) $2,276,700.
D) $2,737,500.