A subsidiary sold a quantity of inventory to its parent entity at a profit of $12 000. The original cost of the inventory to the subsidiary was $41 000. At the end of the year 40% of the inventory was still on hand. The perpetual inventory system is used. For the current year, the consolidation adjustment entry to eliminate this transaction will include which of the following line items?

Select one:

A.

Cr Inventory $7 200

B.

Cr Inventory $41 000

C.

Cr Inventory $4 800

D.

Cr Inventory $29 000