Sand Co. a 55%-owned subsidiary of Pond Inc. made the following entry to record a sale of merchandise to Pond: Accounts Receivable 60,000 Sales Revenue 60,000 All Sand sales are at 125% of cost. One-third of this merchandise remained in the Ponds inventory at year-end. A working paper entry to eliminate unrealized profits from consolidated inventory would include a credit to Inventory in the amount of

a.

$1800

b.

$4,000

c.

$5,000

d.

$10,000

e.

$8,000