The condensed separate and consolidated balance sheets of Parent Corporation and its subsidiary, on the date of their business combination showed inventories of parent, subsidiary and consolidated as: $400,000, $100,000 and $380,000 respectively.This means:

a.

Excess of carrying amount of subsidiarys inventory over its fair value by $20,000.

b.

Excess of fair value of parents inventory over its carrying amount by $20,000.

c.

Excess of fair value of subsidiarys inventory over its carrying amount by $20,000.

d.

Excess of carrying amount of parents inventory over its fair value by $20,000.