Prince CoOwned 80% of Kile Corp

Multiple Choice

Prince Co.owned 80% of Kile Corp.'s common stock.During October 2018, Kile sold merchandise to Prince for $140,000.At December 31, 2018, 50% of this merchandise remained in Prince's inventory.For 2018, gross profit percentages were 30% of sales for Prince and 40% of sales for Kile.The amount of intra-entity gross profit remaining in ending inventory at December 31, 2018 that should be eliminated in the consolidation process is:

A) $28,000.
B) $56,000.
C) $22,400.
D) $21,000.
E) $42,000.