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Question - 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.
Required - Based on the information given above, by what amount should Sonny write down inventory in its books?
$14,000
$15,000
$16,000
$13,000
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