_____ in 2006, Panex Sold Inventory Costing $100,000 to Its

Multiple Choice

_____ In 2006, Panex sold inventory costing $100,000 to its 75%-owned subsidiary, Sanex, for $150,000. At 12/3106, Sanex reported $60,000 of intercompany-acquired inventory in its balance sheet. The amount by which the 2006 consolidated net income that accrues to the controlling interest will be lower as a result of this being an intercompany transaction is

A) $12,000
B) $15,000
C) $20,000
D) $37,500
E) None of the above.