Nicholas owns 100% of the capital stock of both Teddy Corp. and Wright Corp. Teddy purchases merchandise inventory from Wright at 140% of Wright's cost. During the Year 20x1, merchandise that cost Wright $40,000 was sold to Teddy. Teddy sold all of this merchandise to unrelated customers for $81,200 during the Year 20x1. In preparing combined financial statements for 20x1, Nicholas's bookkeeper disregarded the common ownership of Teddy and Wright. Which amount should be eliminated from cost of goods sold in the combined income statement for the Year 20x1?

$56,000

$40,000

$24,000

$16,000