please answer correct with explanation

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: P S Sales 900.000 200,000 Cost of sales 400,000 100.000 500,000 100,000 Gross profit Operating expenses Separate income 200.000 80.000 300,000 20,000 What is amount of income from s reported in Pincome statement ? Select one: O a. 16,200 b. 19,800 O c. 18,000 d. 20,000