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James Corporation owns 80 percent of Carl Corporation's common stock. During October, Carl sold merchandise to James for $265,000. At December 31, 50 percent of

James Corporation owns 80 percent of Carl Corporation's common stock. During October, Carl sold merchandise to James for $265,000. At December 31, 50 percent of this merchandise remains in James's inventory. Gross profit percentages were 25 percent for James and 35 percent for Carl. The amount of intra-entity gross profit in inventory at December 31 that should be eliminated in the consolidation process is

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