Tooker CoAcquired 80% of the Outstanding Common Shares of Vu Ltd

Multiple Choice

Tooker Co.acquired 80% of the outstanding common shares of Vu Ltd.There were no fair value increments or goodwill that arose with the purchase.During 20X1,Tooker sold $7,000 of inventory to Vu for a gross profit of 40%.At the end of 20X1,$3,000 of the inventory is still in Vu's inventory.On their single-entity income statements for 20X1,Tooker and Vu reported the following:

Vu sold all the goods from Tooker that were in its opening inventory.There were no sales between Tooker and Vu in 20X2.At the end of 20X2,what portion of consolidated net income is attributable to Tooker?

A) $8,400
B) $9,300
C) $9,920
D) $10,500