A Corporation owns 20% of B Corporation and applies the equity method. A Corporation uses the accrual basis of accounting. During the current year, A Corporation bought inventory costing $90,000 and then sold it to B Corporation for $120,000. At year-end, only $30,000 of merchandise was still held by B Corporation. Which of the following, if any, is the correct journal entry A Corporation recognizes in the current year to defer the intra-entity gross profit?

• Debit Equity in Investee Income $1,500; Credit Investment in B Corp. $1,500.

• Debit Equity in Investee Income $10,000; Credit Investment in B Corp. $10,000.

• Debit Investment in B Corp $1,500; Credit Equity in Investee Income $1,500

• Debit Investment in B Corp $10,000; Credit Equity in Investee Income $10,000

• None of the other choices are correct.