Question - Tower Inc. owns 80% of Yale Co. and applies the equity method. During the current year, Tower bought inventory costing $66,000 and then sold it to Yale for $100,000. At year-end, only $24,000 of merchandise was still being held by Yale. What amount of intra-entity inventory profit must be deferred by Tower?
A. $6,482.
B. $6,528.
C. $7,498.
D. $8,160.
E. $19,200