Gargiulo Company, a 90% owned subsidiary of Posito Corporation, transfers inventory to Posito at a 25% gross profit rate. The following data are available pertaining specifically to Posito's intra-entity purchases from Gargiulo. Gargiulo was acquired on January 1, 2017.

	2017			2018			2019
Purchases by Posito	$	8,000		$	12,000		$	15,000
Ending inventory on Posito's books		1,200			4,000			3,000
Assume the equity method is used. The following data are available pertaining to Gargiulo's income and dividends.
	2017			2018			2019
Gargiulo's net income	$	70,000		$	85,000		$	94,000
Dividends paid by Gargiulo		10,000			10,000			15,000

For consolidation purposes, what amount would be debited to cost of goods sold for the 2017 consolidation worksheet with regard to unrecognized intra-entity gross profit remaining in ending inventory with respect to the transfer of merchandise?

$300.

$270.

$2,000.

$240.

$1,600.