P Corporation acquired a 60% interest in S Corporation on January 1, 2014, at book value equal to fair value. During 2014, P sold merchandise that cost $225,000 to S for $315,000. One-third of this merchandise remained in S's inventory at December 31, 2014. S reported net income of $200,000 for 2014. P's income from S for 2014 is:

Select one:

A. $102,000.

B. $60,000.

C. $90,000.

D. $120,000.