_____ in Its Consolidated 2006 Financial Statements, Pozak Recognized $37,000

Multiple Choice

_____ In its consolidated 2006 financial statements, Pozak recognized $37,000 of intercompany profit relating to upstream inventory sales from its 75%-owned subsidiary (Sozak) . Of this amount, $7,000 pertained to intercompany profit deferred at 12/31/05. During 2006, downstream intercompany sales totaled $100,000 (Pozak's cost was $60,000) . What amount was credited to Inventory in consolidation at 12/31/06? (Hint: Prepare the analysis of unrealized profit for the 2006 transfers-this is possible from the information given.)

A) $ -0-.
B) $7,000
C) $10,000
D) $30,000
E) None of the above.