Whirlpool Corp. ships merchandise to Fresenius Medical Care in a consignment arrangement. The arrangement specifies that Fresenius Medical Care will attempt to sell the merchandise, and in return, Whirlpool Corp. will pay to Fresenius Medical Care a 15% sales commission on any merchandise sold. During the year, Whirlpool Corp. ships inventory with a cost of $85,000 to Fresenius Medical Care. By the end of the year, $64,000 of the merchandise has been sold to customers for a total of $90,200.

What amount of inventory will Whirlpool Corp. report at year end?

Multiple Choice:

• $21,000.

• $5,200.

• $0.

• $12,750.