Webb Co Acquired 100% of Rand Inc

Multiple Choice

Webb Co. acquired 100% of Rand Inc. on January 5, 2011. During 2011, Webb sold goods to Rand for $2,400,000 that cost Webb $1,800,000. Rand still owned 40% of the goods at the end of the year. Cost of goods sold was $10,800,000 for Webb and $6,400,000 for Rand. What was consolidated cost of goods sold?

A) $17,200,000.
B) $15,040,000.
C) $14,800,000.
D) $16,960,000.
E) $14,560,000.