Sand Co. a 65%-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.	$ 8,000.
	b.	$10,000.
	c.	$ 4,000.
	d.	$ 5,000.