Mr. Cord owns four corporations. Combined financial statements are being prepared for these corporations, which have intercompany loans of $200,000 and intercompany profits of $500,000. What amount of these intercompany loans and profits should be included in the combined financial statements?

Intercompany

Loans

Profits

a.

$200,000

$0

b.

$200,000

$500,000

c.

$0

$0

d.

$0

$500,000