aun Corporation acquired an 90% interest in Moon Corporation on January 1, 2018,

when the book values of Moon's assets and liabilities were equal to their fair values.

The cost of the 75% interest was equal to 90% of the book value of Moon's net assets.

During 2018, Sun sold merchandise that cost $75,000 to Shenley for $90,000.

On December 31, 2018, three-fourths of the merchandise acquired from Sun remained in Moon's inventory.

Separate incomes (investment income not included) of the two companies are as follows:

SunMoon

Sales Revenue$180,000$160,000

Cost of GoodsSold120,00090,000

OperatingExpenses17,00021,000

Separateincomes$43,000$ 49,000

What is Pouch's income from Shenley for 2014?

A)$27,200B)$29,600

C)$32,350D) $32,850

A.$27,200

B.$29,600

C.$32,350