Tu Company owns 100% of Valdez Company outstanding common stock. Tu's cost of goods sold for the year totals $600,000, and Valdez's cost of goods sold totals $400,000. During the year, Tu sold inventory costing $60,000 to Valdez for $100,000. By the end of the year, all transferred inventory was sold to outside customers. What amount should be reported as a cost of goods sold in the consolidated statement of income?