Yeshiva Corp acquired 100% of the common stock of Dartmouth Corp on 1/1/2020 for a price equal to the net book value and uses the equity method. During 2020 Yeshiva sold goods to Dartmouth for $700,000 that cost Yeshiva $500,000. Dartmouth still owned 40% of the goods at the end of the year.
In 2021 Yeshiva sold goods with a cost of $500,000 to Dartmouth for $700,000 and the buyer still owned 40% of the goods at year-end. In 2021, cost of goods sold was $1,000,000 for Yeshiva and $990,000 for Dartmouth on their pre-consolidated income statements.
What was consolidated cost of goods sold in 2021?
a) 1,990,000
b) 1,370,000
c) 1,870,000
d) 1,129,000