Pink Corporation owns 80 percent of Sink Company's voting shares. During 20X4, Pink produced 60,000 smart phones at a cost of $62 each and sold 45,000 smart phones to Sink for $93 each. Sink sold 26,000 of the smart phones to unaffiliated companies for $128 each prior to December 31, 20X4, and sold the remainder in early 20X5 to unaffiliated companies for $133 each. Both companies use the perpetual inventory systems.Based on the information given above, what amount of cost of goods sold did Pink record in 20X4?
A. $1,612,000
B. $3,596,000
C. $2,418,000
D. $2,790,000
Answer: D
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