Husky Corporation owns 80% of Cougar . During 2020, Husky sold merchandise to Cougar for $250,000. At December 31, $50,000 of this amount remained in Cougar's ending inventory. Husky's gross profit percentage is 25% and Cougar's is 40%. How much intra-entity gross profit will be eliminated from Cougar's inventory in a December 31, 2020 consolidation?

answer choices:

$50,000

$100,000

$12,500

$20,000