Parent Company purchased 100 percent of Subsidiary Corporation's stock on January 1, X1, for $250,000 cash. At date of acquisition, Subsidiary's Share Capital and RE amounted to $50,000 and $10,000 respectively.

Summarized statements of financial position of the companies on December 31, X3, are presented below.

	Parent	Subsidiary
Assets
Cash Investment	$100,000 250,000	$25,000
Other assets	225,000	125,000
Total assets	$575,000	$150,000
Liabilities and equity
Current liabilities	$25,000	$35,000
Share capital	150,000	50,000
Retained earnings	400,000	65,000
Total liabilities and equity	$575,000	$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).

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?