On October 15, 20X1, Planet Company sold inventory to Stars Corporation, its Mexican subsidiary. The goods cost Planet $2,700 and were sold to Stars for $3,500, payable in Mexican pesos. The goods are still on hand at the end of the year on December 31. The Mexican peso is the functional currency of Stars. The exchange rates follow: October 151 peso=$0.07 December 311 peso=$0.08 Based on the preceding information, what amount of unrealized intercompany gross profit is eliminated in preparing the consolidated financial statements for the year?
A. $1,000
B. $800
C. $1,300
D. $0
Answer: B
Business
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