Parent Co. owns 90% of the outstanding shares of Sub Inc. During 2019, Parent sold merchandise costing $100,000 to Sub for $200,000. At December 31, 2019, 50% of this merchandise remains in Sub's inventory. Assuming a 40% tax rate, how much unrealized profit should be eliminated from ending inventory in the consolidation process at December 31, 2019?

Multiple Choice

• $30,000

• $50,000

• $60,000

• $100,000