The financial statements of Post Company and Stamp Company on December 31, Year 5, were as follows: \begin{tabular}{|c|c|c|} \hline \multicolumn{3}{|c|}{ BALANCE SHEETS } \\ \hline Assets & Post & Stamp \\ \hline Cash & 50,000 & 10,000 \\ \hline Accounts receivable & 250,000 & 100,000 \\ \hline Inventories & 3,000,000 & 520,000 \\ \hline Equipment (net) & 6,150,000 & 2,500,000 \\ \hline Buildings (net) & 2,600,000 & 500,000 \\ \hline \multirow[t]{2}{*}{ Investment in Stamp (at cost) } & 850,000 & - \\ \hline & $12,900,000 & $3,630,000 \\ \hline \multicolumn{3}{|l|}{ Liabilities and Shareholders' Equity } \\ \hline Current liabilities & 300,000 & $170,000 \\ \hline Long-term liabilities & 4,000,000 & 1,100,000 \\ \hline Common shares & 3,000,000 & 500,000 \\ \hline \multirow[t]{2}{*}{ Retained earnings } & 5,600,000 & 1,860,000 \\ \hline & $12,900,000 & $3,630,000 \\ \hline \end{tabular} \begin{tabular}{|c|c|c|} \hline \multicolumn{3}{|c|}{ STATEMENTS OF INCOME AND RETAINED EARNINGS } \\ \hline Sales revenue & $3,500,000 & 900,000 \\ \hline \multirow[t]{2}{*}{ Other revenues } & 300,000 & 30,000 \\ \hline & 3,800,000 & 930,000 \\ \hline Cost of goods sold & 1,700,000 & 330,000 \\ \hline Selling and administrative expenses & 300,000 & 100,000 \\ \hline Other expenses & 200,000 & 150,000 \\ \hline \multirow[t]{2}{*}{ Income tax expense } & 300,000 & 70,000 \\ \hline & $2,500,000 & 650,000 \\ \hline Net income & 1,300,000 & 280,000 \\ \hline \multirow[t]{2}{*}{ Retained earnings, beginning balance } & $4,500,000 & $1,600,000 \\ \hline & 5,800,000 & 18,800,000 \\ \hline Dividends declared & 200,000 & 20,000 \\ \hline Retained earnings, ending balance & $5,600,000 & $1,860,000 \\ \hline \end{tabular} Post owns 70 percent of Stamp and carries its investment in Stamp on its books by the cost method. During Year 4, Post sold Stamp $100,000 worth of merchandise, of which $60,000 was resold by Stamp in the year. During Year 5 , Post had sales of $200,000 to Stamp, of which 40 percent was resold by Stamp. Intercompany sales are priced to provide Post with a gross profit of 30 percent of the sales price. On December 31, Year 4, Post had in its inventories $150,000 of merchandise purchased from Stamp during Year 4. On December 31, Year 5, Post had in its ending inventories $100,000 of merchandise that had resulted from purchases of $350,000 from Stamp during Year 5 . Intercompany sales are priced to provide Stamp with a gross profit of 60 percent of the sale price. Both companies are taxed at 25 percent. To calculate Post's consolidated cost of goods sold, the first step is to add together the unadjusted totals from Post's and Stamp's separate-entity financial statements. What is the adjustment to this figure for unrealized profits in beginning inventory for the year ended December 31, Year 5 ? Multiple Choice $76,500 $96,000 $6,000 $102,000