At the beginning of 2009, a subsidiary sold equipment, carried on its books at $3,000,000, net, to its parent for $5,000,000. The equipment had a remaining life of 20 years and straight-line depreciation is used. It is now the end of 2012, and the parent still owns the equipment. On the 2012 consolidation working paper, eliminations I:
a. reduce the parent's investment account by $1,700,000.
b. reduce the subsidiary's beginning retained earnings account by $ 1,600,000.
c. reduce depreciation expense by $ 100,000.
d. reduce net equipment by $2,000,000.