Yukon Co Acquired 75% Percent of the Voting Common Stock of of Ontario

Multiple Choice

Yukon Co. acquired 75% percent of the voting common stock of Ontario Corp. on January 1, 2011. During the year, Yukon made sales of inventory to Ontario. The inventory cost Yukon $260,000 and was sold to Ontario for $390,000. Ontario still had $60,000 of the goods in its inventory at the end of the year. The amount of unrealized intra-entity profit that should be eliminated in the consolidation process at the end of 2011 is

A) $15,000.
B) $20,000.
C) $32,500.
D) $30,000.
E) $110,000.