Elvis Company Purchases Inventory for $70,000 on Mar 19, 20X8

Multiple Choice

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

A) $14,000
B) $15,000
C) $13,000
D) $16,000