Blue Mountain, Inc.owns 40% of Grand Co. and applies the equity method. During the current year, Blue Mountain bought inventory costing $100,000 and then sold it to Grand for $150,000. At year-end, only 25% of the merchandise was still being held by Grand. What amount of intra-entity inventory profit must be deferred by Blue Mountain? Select one: A. $12,500 B. $ 5,000 C. $15,000 D. $37,500