Use the Following Information to Answer Bellow Questions

Use the following information to answer bellow Questions
A subsidiary sells merchandise to its parent at a markup of 25% on cost. In the current year, the parent had $75,000 in merchandise purchased from the subsidiary in its beginning inventory. During the current year, the parent paid $750,000 for merchandise from the subsidiary. By year-end, the parent has sold $700,000 of merchandise purchased from the subsidiary to outside customers for $900,000.
-How do the consolidation working paper eliminating entries affect cost of goods sold?

A) net credit of $765,000
B) net credit of $725,000
C) net credit of $750,000
D) net credit of $740,000