Padre Company Purchases Inventory for $70,000 on Mar 19,20X8 and Sells

Multiple Choice

Padre Company purchases inventory for $70,000 on Mar 19,20X8 and sells it to Sonny Corporation for $95,000 on May 14,20X8.Sonny still holds the inventory on December 31,20X8,and determines that its market value (replacement cost) is $82,000 at that time.Sonny writes the inventory down from $95,000 to its lower market value of $82,000 at the end of the year.Padre owns 75 percent of Sonny.
-Based on the information given above,what amount of inventory should be eliminated in the consolidation worksheet for 20X8?

A) $15,000
B) $14,000
C) $12,000
D) $13,000