Prince Corp

Multiple Choice

Prince Corp.owned 80% of Kile Corp.'s common stock.During October 2009,Kile sold merchandise to Prince for $140,000.At December 31,2009,50% of this merchandise remained in Prince's inventory.For 2009,gross profit percentages were 30% of sales for Prince and 40% of sales for Kile.The amount of unrealized intercompany profit in ending inventory at December 31,2009 that should be eliminated in the consolidation process is

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