Continue the case of Parent Company in the subsequent year (X4). Assume that the BV of Inventory on December 31, X4 for Parent and Subsidiary amounts to $12,000 and $5,000 respectively. What amount would Parent Company report on its consolidated F/S on December 31, X4, for Inventory?

$20,000
	$19,000
	17,000
	None of these answers
	$14,000

Summarized statements of financial position of the companies on December 31, X3. are presented below. Parent Subsidiary $25.000 Assets Cash Investment Other assets Total assets $100,000 250,000 225.000 $575,000 125.000 $150,000 Liabilities and equity Current liabilities $25,000 $35,000 Share capital Retained earnings Total liabilities and equity 150,000 400,000 $575,000 50,000 65,000 $150,000 Fair values of Subsidiary were equal to book values except for buildings, which had a fair value of $100,000 in excess of net book value (remaining useful life of 10 years). Goodwill has not been impaired since acquisition. No dividends were declared in X3. Profit for the year X3 for Parent and Subsidiary amounts to $90,000 and $35,000 respectively . During X3, $50,000 of Subsidiary's sales were to Parent. Of these sales, $20.000 remains in the December 31, X3, inventories of Parent. The December 31, X2, inventories of Parent contained $10,000 of merchandise purchased from Subsidiary. Subsidiary's sales are priced to provide it with a gross profit of 10% (gross profit on sales). What would be the Adjusted earnings of Parent for the year ended December 31, X3