ABC Corporation Owns 75 Percent of XYZ Company's Voting Shares

Multiple Choice

ABC Corporation owns 75 percent of XYZ Company's voting shares. During 20X8, ABC produced 50,000 chairs at a cost of $79 each and sold 35,000 chairs to XYZ for $90 each. XYZ sold 18,000 of the chairs to unaffiliated companies for $117 each prior to December 31, 20X8, and sold the remainder in early 20X9 to unaffiliated companies for $130 each. Both companies use perpetual inventory systems.
-Based on the information given above,what amount of cost of goods sold did ABC record in 20X8?

A) $2,765,000
B) $1,620,000
C) $1,422,000
D) $2,963,000