Kean Corp. owns 80% of Lavender Corp.'s common stock. During October, Lavender sold merchandise to Kean for $120,000. At December 31, one-third of the merchandise remained in Kean's inventory. For the year, gross profit percentages were 25% for Kean and 30% for Lavender. The amount of unrealized intra-entity profit in ending inventory at December 31 that should be eliminated in consolidation is

Choices:

$8,000

$9,600

$12,000

$10,000