Par Corporation owns an 80 percent interest in Sel Corporation acquired several years ago. Sel regularly sells merchandise to its parent at 125 percent of Sel's cost. Gross profit data of Par and Sel for 2012 are as follows:

During 2012, Par purchased inventory items from Sel at a transfer price of $400,000. Par's December 31, 2011 and 2012, inventories included goods acquired from Sel of $100,000 and $125,000, respectively. Assume Par sells the inventory purchased from Sel in the following year.1. Consolidated sales of Par Corporation and Subsidiary for 2012 were:a. $1,800,000b. $1,425,000c. $1,400,000d. $1,240,0002. The unrealized profits in the year-end 2011 and 2012 inventories were:a. $100,000 and $125,000, respectivelyb. $80,000 and $100,000, respectivelyc. $20,000 and $25,000, respectivelyd. $16,000 and $20,000, respectively3. Consolidated cost of goods sold of Par Corporation and Subsidiary for 2012 was:a. $1,024,000b. $1,045,000c. $1,052,800d.$1,056,000

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Sel Par Sales Cost of goods sold Gross profit $1,000,000 800,000 $ 200,000 200,000 $800,000 640,000 $160.000