Global Corporation acquired 85 percent of Local Company's voting shares of stock in 20X7. During 20X8, Global purchased 50,000 picture tubes for $15 each and sold 28,000 of them to Local for $20 each. Local sold all of the units to unrelated entities prior to December 31, 20X8, for $30 each. Both companies use perpetual inventory systems.

Which worksheet consolidating entry is needed in preparing consolidated financial statements for 20X8 to remove all effects of the intercompany sale?

A. Sales 560,000
Cost of Goods Sold 560,000
B. Sales 650,000
Cost of Goods Sold 650,000
C. Cost of Goods Sold 560,000
Sales 560,000
D. Cost of Goods Sold 650,000
Sales 650,000

A) Option A
B) Option B
C) Option C
D) Option D