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17. During 20X9, Nutter Corporation recorded sales of inventory for $500,000 to Butter Company, its wholly owned subsidiary, which resulted in a $300,000 gross profit.

17.

During 20X9, Nutter Corporation recorded sales of inventory for $500,000 to Butter Company, its wholly owned subsidiary, which resulted in a $300,000 gross profit. At December 31, 20X9, Butter held one-fifth (1/5) of these goods in its inventory. What is the amount of unrealized gross profit at December 31, 20X9?

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$100,000

$20,000

$40,000

$60,000

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