Lorn Corporation purchased inventory from Dresser Corporation for $$120,000$ on September $20,201,$ and resold $80$ percent of the inventory to unaffiliated companies prior to December $31,201,$ for $$140,000.$ Dresser produced the inventory sold to Lorn for $$75,000.$ Lorn owns $70$ percent of Dresser's voting common stock. The companies had no other transactions during $201.$

$4.$ What inventory balance will be reported by the consolidated entity on December $31,201?$

$$24,000$

$$15,000$

$$39,000$

$$16,800$