Cattle Company Sold Inventory with a Cost of $40,000 to Its

Multiple Choice

Cattle Company sold inventory with a cost of $40,000 to its 90%-owned subsidiary, Range Corp., for $100,000 in 2016.Range resold $75,000 of this inventory for $100,000 in 2016.Based on this information, the amount of inventory reported on the consolidated financial statements at the end of 2016 is:

A) ​$10,000.
B) ​$18,000.
C) ​$21,000.
D) ​$30,000.