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P Company sold merchandise costing $480,000 to S Company (80% owned) for $600,000. At the end of the current year, one-fifth of the merchandise remains

P Company sold merchandise costing $480,000 to S Company (80% owned) for $600,000. At the end of the current year, one-fifth of the merchandise remains in S Company's inventory. Applying the lower-of- cost-or-market rule, S Company wrote this inventory down to $98,000. What amount of intercompany profit should be eliminated on the consolidated statements workpaper?

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