PCO owns a 90% interest in s Co, purchased at a time when the book values of S recorded assets and liabilities were equal to fair values. During 2014, p sold merchandise to s cost 40,000 for $32,000. At December 31, 2014, 75% of this merchandise sold to third party. Separate incomes for P&S are summarized as follows: S Sales $900,000 $200,000 400,000 100,000 Cost of sales Gross profit 500,000 100,000 200,000 80,000 Operating expenses $ 20,000 What is amount Separate income $300,000 of unrealized Income from intercompany sales? Select one: a. 6,000 profit b. 2,000 loss c. 2,000 profit d. 6,000 loss