Teslat Ltd. owns 80% of the outstanding common shares of Gily Ltd. During 20X6, sales from Gily to Teslat were $300,000. Merchandise was priced to provide Gily with a gross margin of 15%. Teslats inventories contained $30,000 at December 31, 20X5, and $20,000 at December 31, 20X6, of merchandise purchased from Gily. Cost of goods sold for Teslat and Gily for 20X6 on their separate-entity income statements were as follows:

	Teslat	Gily
Beginning inventory	$ 100,000	$ 50,000
Purchases	700,000	200,000
Ending inventory	(130,000)	(85,000)
Cost of goods sold	$ 670,000	$ 165,000

What is the balance of the consolidated inventory account at December 31, 20X6?

Select one:

a.

$195,000

b.

$212,000

c.

$165,000

d.

$215,000