40. A parent owns 80% of its subsidiarys voting stock. At the end of the year, the subsidiarys ending inventory includes $15,000 in unconfirmed profit on merchandise purchased from the parent. The subsidiarys beginning inventory included unconfirmed profit of $10,000 on merchandise purchased from the parent. The parents ending inventory includes $40,000 in unconfirmed profit on merchandise purchased from the subsidiary. The parents beginning inventory included $35,000 in unconfirmed profit on merchandise purchased from the subsidiary. Consolidation eliminating entries (I) related to this information include a credit to inventory in the amount of

Select one:

a. $55,000

b. $45,000

c. $44,000

d. $36,000