Pirate Transport bought 80% of the outstanding voting stock of Seaways Shipping at book value several years ago. (At the time of purchase, the fair value and book value of Seaways' net assets were equal.) Pirate sells merchandise to Seaways at 120% above Pirate's cost. Intercompany sales from Pirate to Seaways for 2014 were $550,000. Unrealized profits in Seaways' December 31, 2013 inventory and December 31, 2014 inventory were $17,000 and $16,000, respectively. Seaways reported net income of $900,000 for 2014. Required: To eliminate intercompany profit in the ending inventory, the cost of goods sold will be Choose... To eliminate intercompany sales and cost of goods sold, sales revenue will be To recognize previously deferred unrealized profits from the beginning inventory, investment in seaway will be Choose... debited to $16,000 $721,000 debited to $17,000 credited to $17,000 credited to $16,000 debited to $550,000 The Pirate's income from Seaways for 2014 is