Thurston Limited Sold Inventory to Its Parent Entity,Cowboys Ltd,at a Before-Tax

Multiple Choice

Thurston Limited sold inventory to its parent entity,Cowboys Ltd,at a before-tax profit of $8000.The inventory originally cost Thurston Limited $32 000.At balance sheet date,Cowboys Limited had sold 90% of the inventory to an external party.The consolidation adjustment entry (excluding tax effects) will eliminate unrealised profit amounting to:

A) $800.
B) $7200.
C) $3200.
D) $24 000.