On January 2,20X5,Ross Co

Multiple Choice

On January 2,20X5,Ross Co.acquired 90% of Singh Ltd.for $490,000.On that date,Singh's shareholders' equity totalled $420,000.Ross uses the equity method to record its investment.On the acquisition date,Ross sold a capital asset,with a remaining useful life of 10 years,to Singh for a gain of $14,000.At Ross's December 31,20X5 year-end,what is the amount of realized profit with respect to the sale of this capital asset? Ignore income taxes.

A) $0
B) $1,400
C) $12,600
D) $14,000