Pruitt Company Owns 80% of Stoney Company's Common Stock

Multiple Choice

Pruitt Company owns 80% of Stoney Company's common stock.During 2014, Stoney sold $400,000 of merchandise to Pruitt.At December 31, 2014, one-fourth of the merchandise remained in Pruitt's inventory.In 2014, gross profit percentages were 25% for Pruitt and 30% for Stoney.The amount of unrealized intercompany profit that should be eliminated in the consolidated statements is

A) $80,000.
B) $24,000.
C) $30,000.
D) $25,000.