_____ in 2005, Polex Sold Inventory Costing $100,000 to Its

Multiple Choice

_____ In 2005, Polex sold inventory costing $100,000 to its 100%-owned subsidiary, Solex, for $150,000. At the end of 2005, Solex reported $60,000 of intercompany-acquired inventory in its balance sheet. What is the unrealized intercompany profit at 12/31/05?

A) $16,000
B) $20,000
C) $40,000
D) $50,000
E) None of the above.