Tower Inc.owns 30% 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 $120,000.At year-end,only $24,000 of merchandise was still being held by Yale.What amount of intercompany inventory profit must be deferred by Tower?
A) $6,480.
B) $3,240.
C) $10,800.
D) $16,200.
E) $6,610.
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