Use the Following Information to Answer the Question(s) Below

question 10

Multiple Choice

Use the following information to answer the question(s) below.

Paris Corporation purchased 80% of the outstanding voting common stock of Sanders Corporation on January 1, 2014, at a cost of $400,000. The stockholders' equity of Sanders Corporation on this date consisted of $200,000 of Capital Stock and $100,000 of Retained Earnings. Book values were equal to fair values except for land and inventory. The book value of Sanders' land was $10,000, and fair value was $22,000. The book value of Sanders' inventory was $30,000, and fair value was $25,000.

-Assume Paris's inventory account had a book value of $40,000 and a fair value of $44,000 on January 1,2014.Using the parent company theory,what was the amount reported on the consolidated balance sheet for inventories on January 1,2014?

• A)$65,000
• B)$66,000
• C)$69,000
• D)$70,000