profit rate. The following data are available pertaining specifically to Posito's intra-entity purchases from Gargiulo. Gargiulo was acquired on January 1, 2017. Gargiulo Company, a 90% owned subsidiary of Posito Corporation, transfers inventory to Posito at a 25% gross 2019 15,000 3,000 2017 2018 8,000 S 12,000 Purchases by Posito Ending inventory on Posito's books 1,200 4,000 Assume the equity method is used. The following data are available pertaining dividends Gargiulo's income and to 2019 2018 2017 S 85,000 10,000 94,000 70,000 Gargiulo's net income Dividends paid by Gargiulo 15,000 10,000 12) For consolidation purposes, what amount would be debited to cost of goods sold for the 2018 consolidation worksheet with regard to the unrecognized intra-entity gross profit remaining in ending inventory with respect to the 2018 transfer of merchandise? A) $800. 12) D) $2,400 E) $3,000. B) $900 C) $1,000