11 mark A few years ago, Posey Ltd. acquired 90 percent of the common shares of Suba Co. In February 200, Suba purchased goods for $12,000 and in April 20X0, sold them to Posey for $15,000. Suba's usual gross margin is 25 percent, but it gave Posey a discount in y 20X0, Posey sold 60 percent of those goods to one of its customers for $12,000. The rest of the goods remain unsold at the end of the year. Both Posey and Suba have income tax rates of 40 percent. To calculate the inventory for the consolidated balance sheet, add together the inventory from Posey and Suba's separate entity balance sheets and reduce by a net adjustment of O a. $720. Ob. $1,200. Oc. $1,500. O d. $6,000. /1 mark