Angelo Limited Sold Inventory to Its Parent Entity at a Profit

Multiple Choice

Angelo Limited sold inventory to its parent entity at a profit of $4 000.The inventory cost Angelo Limited $16 000.At balance sheet date the parent had sold 50% of the inventory to an external party.The consolidation adjustment entry (excluding tax effects) will eliminate unrealised profit amounting to:

A) $2 000
B) $4 000
C) $12 000
D) $16 000