Problem 5-2 (LO 5-3) James Corporation owns 80 percent of Carl Corporation's common stock. During October, Carl sold merchandise to James for $100,000. At December 31, 50 percent of this merchandise remains in James's inventory. Gross profit percentages were 30 percent for James and 40 percent for Carl. The amount of intra-entity gross profit in inventory at December 31 that should be eliminated in the consolidation process is Multiple Choice $15,000. $16,000. $40,000 $20,000