Diller Owns 80% of Lake Company Common Stock

Multiple Choice

Diller owns 80% of Lake Company common stock.During October 2016, Lake sold merchandise to Diller for $300,000.On December 31, 2016, one-half of this merchandise remained in Diller's inventory.For 2016, gross profit percentages were 30% for Diller and 40% for Lake.The amount of unrealized profit in the ending inventory on December 31, 2016 that should be eliminated in consolidation is ____.

A) ​$80,000
B) ​$60,000
C) ​$32,000
D) ​$30,000