Phelps CoUses the Sophisticated Equity Method to Account for the 80

Multiple Choice

Phelps Co.uses the sophisticated equity method to account for the 80% investment in its subsidiary Shore Corp.At the time of the acquisition, the fair values of the net asset required approximated their book values.Based upon the following information, what is consolidated net income
$\begin{array}{lr}\text { Phelps internally generated income: } & \$ 250,000 \\\text { Shore internally generated income: } & \$ 50,000 \\\text { Intercompany profit on Shore beginning inventory: } & \$ 10,000 \\\text { Intercompany profit on Shore ending inventory: } & \$ 15,000\end{array}$

A) $300,000
B) $295,000
C) $286,000
D) $305,000