Tara Company owns 40% of Hawkins, Inc., and applies the equity method. During the current year, Hawkins buys inventory costing $500,000 and sells it to Tara for $750,000. At the end of the year, 20% of this inventory is still held by Tara. How much gross profit that must be deferred when applying the equity method? A. $150,000 B. $50,000 C. $25,000 D. $20,000