Question 1. A Co owns a controlling investment of 70% of B Co. During the year, A Co sold goods to B Co for $60,000 at cost plus 20%. At the year end, B Co still had half of the goods in their inventory. A Co's total inventory at the year end was $120,000, and B Co's total inventory was $80,000. How much inventory should be recognised in A Co's consolidated statement of financial position?

$195,000

$200,000

$176,000

$158,500