What amount of inventory must eliminated from balance sheet

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Parent Corporation owns 90 percent of Subsidiary 1 Company's stock and 75 percent of Subsidiary 2 Company's stock. During 20X8, Parent sold inventory purchased in 20X7 for $48,000 to Subsidiary 1 for $60,000. Subsidiary 1 then sold the inventory at its cost of $60,000 to Subsidiary 2. Prior to December 31, 20X8, Subsidiary 2 sold $45,000 of inventory to a nonaffiliate for $67,000 and held $15,000 in inventory at December 31, 20X8.

Problem 1: What amount of inventory must be eliminated from the consolidated balance sheet for 20X8?

A) $2,400
B) $9,000
C) $12,000
D) $3,000

Reference no: EM132671534

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