Use the Following Information to Answer the Question(s) Below

Multiple Choice

Use the following information to answer the question(s) below..

Pelga Company routinely receives goods from its 80%-owned subsidiary, Swede Corporation. In 2014, Swede sold merchandise that cost $80,000 to Pelga for $100,000. Half of this merchandise remained in Pelga's December 31, 2014 inventory. This inventory was sold in 2015. During 2015, Swede sold merchandise that cost $160,000 to Pelga for $200,000. $62,500 of the 2015 merchandise inventory remained in Pelga's December 31, 2015 inventory. Selected income statement information for the two affiliates for the year 2015 was as follows:

-Consolidated cost of goods sold for Pelga and Subsidiary for 2015 were

A) $512,000.
B) $526,000.
C) $522,500.
D) $528,000.