Peller owns 80% of Sando Company common stock. During the fourth quarter of 2009, Sando sold inventory to Peller for $200,000. At the end of December 2009, half this inventory remained in Peller’s ending inventory. For the year 2009, Peller’s gross profit percentage was 30% while Sando’s was 40%. How much unrealized profit should be eliminated from ending inventory on December 31, 2009?

a. $80,000

b. $40,000

c. $32,000

d. $30,000