Jackson Company owns 80% of Canton Corporation’s common stoc…
Jackson Company owns 80% of Canton Corporation’s common stock. During October, Canton sold merchandise to Jackson for $250,000. At December 31, 40% of this merchandise remains in Jackson’s inventory. Gross profit percentages were 20% for Jackson and 30% for Canton. The amount of intra-entity gross profit in inventory at December 31 that should be eliminated in the consolidation process is