Selected information from the separate and consolidated balance sheets and income statements of Pare, Inc. and its subsidiary, Shel Co., as of December 31, Year 1, and for the year then ended is as follows:
| Pare | Shel | Consolidated | |
|---|---|---|---|
| Balance sheet accounts | |||
| Accounts receivable | $ $52,000 | $ $38,000 | $ $78,000 |
| Inventory | 60,000 | 50,000 | 104,000 |
| Income statement accounts | |||
| Revenues | 400,000 | 280,000 | 616,000 |
| Cost of goods sold | 300,000 | 220,000 | 462,000 |
| Gross profit | $ 100,000 | $ 60,000 | $ 154,000 |
Additional information: During Year 1, Pare sold goods to Shel at the same markup on cost that Pare uses for all sales.In Pare's consolidating worksheet, what amount of unrealized intercompany profit was eliminated?
| a. | $64,000 | |
| b. | $58,000 | |
| c. | $6,000 | |
| d. | $12,000 |
