Pepper Corporation Owns 75 Percent of Salt Company's Voting Shares

Multiple Choice

Pepper Corporation owns 75 percent of Salt Company's voting shares.During 20X8,Pepper produced 50,000 chairs at a cost of $79 each and sold 35,000 chairs to Salt for $90 each.Salt 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 must be eliminated from the consolidated income statement for 20X9?

A) $187,000
B) $221,000
C) $1,422,000
D) $2,963,000