_____ on 11/11/06, Puzco Sold Inventory Costing $50,000 to Suzco

Multiple Choice

_____ On 11/11/06, Puzco sold inventory costing $50,000 to Suzco, its foreign subsidiary, for $100,000. At year-end, Suzco reported in its balance sheet 60,000 LCUs of this inventory. On 11/11/06, $1 equalled 4 LCUs. On 12/31/06, $1 equalled 5 LCUs. How much intercompany profit must be deferred in the consolidated income statement at 12/31/06 under the temporal method of translation?

A) $6,000
B) $7,500
C) $30,000
D) $37,500
E) None of the above.