A Subsidiary Sold Inventory to Its Parent in Year 1

Multiple Choice

A subsidiary sold inventory to its parent in year 1 at a before-tax profit of $15 000.At balance sheet date,the parent had not sold the inventory to an external party.The company tax rate is 30%.The year 1 consolidation worksheet will contain which of the following adjustment entries for inventory?

A) Dr Inventory $15 000
B) Dr Inventory $10 500
C) Cr Inventory $15 000
D) Cr Inventory $10 500