15. On May 31, 2005, the date of the business combination of Passey Corporation and its 80%-owned subsidiary, Sandy Company, for which Passey uses the equity method of accounting, the balance of Sandy’s Retained Earnings account was $100,000, and on May 31, 2006, the after-closing balance was $120,000. Prior to Passey’s May 31, 2006, closing entries, the balance of its Retained Earnings of Subsidiary ledger account was:

a. Zero.

b. $80,000.

c. $100,000.

d. An undeterminable amount.