X Inc Owns 80% of Y Inc B) C)

X Inc. owns 80% of Y Inc. During 2020, X Inc. sold inventory to Y for $10,000. Half of this inventory remained in Y's warehouse at year end.
Y Inc. sold inventory to X Inc. for $5,000. 40% of this inventory remained in X's warehouse at year end.
Both companies are subject to a tax rate of 40%. The gross profit percentage on sales is 20% for both companies. Unless otherwise stated, assume X Inc. uses the cost method to account for its investment in Y Inc.
What would be the journal entry to eliminate any unrealized profits from the consolidated financial statements during the year?

A)
$$\begin{array} { | l | r | r | } \hline & \text { Debit } & \text { Credit } \\\hline \text { Cost of Goods Sold } & \$ 1,400 & \\\hline \text { Inventory } & & \$ 1,400 \\\hline\end{array}$$
B)
$$\begin{array} { | l | r | r | } \hline & \text { Debit } & \text { Credit } \\\hline \text { Sales } & \$ 15,000 & \\\hline \text { Cost of Goods Sold } & & \$ 15,000 \\\hline\end{array}$$
C)
$$\begin{array} { | l | r | r | } \hline & \text { Debit } & \text { Credit } \\\hline \text { Sales } & \$ 15,000 & \\\hline \text { Cost of Goods Sold } & & \$ 12,000 \\\hline \text { Invertory } & & \$ 3,000 \\\hline\end{array}$$