James Corporation owns 80 percent of Carl Corporation's common stock. During October, Carl sold merchandise to James for $267,500. At December 31, 40 percent of this merchandise remains in James's inventory. Gross profit percentages were 10 percent for James and 20 percent for Carl. The amount of intra-entity gross profit in inventory at December 31 that should be eliminated in the consolidation process is Multiple Choice $10,700. $53,500. $17,120. $21,400.