Beagle Co Owned 80% of Maroon Corp

Multiple Choice

Beagle Co. owned 80% of Maroon Corp. Maroon owned 90% of Eckston Inc. Separate company net incomes for 2021 are shown below; these figures contained no investment income. Amortization expense was not required by any of these acquisitions. Included in Eckston's operating income was a $56,000 gross profit on intra-entity transfers to Maroon. The accrual-based net income of Eckston Inc. is calculated to be

A) $234,000.
B) $211,000.
C) $221,000.
D) $224,000.
E) $246,000.