8. In a working paper elimination (in journal entry format) dated March 31, 2006, for the elimination of intercompany sales, cost of goods sold, and intercompany profit in inventories resulting from a parent company’s sales of merchandise to its partially owned subsidiary, the intercompany profit in the April 1, 2005 (beginning-of-year) inventories of the subsidiary is:

a. Debited to Inventories—Subsidiary.

b. Credited to Inventories—Subsidiary.

c. Debited to Retained Earnings—Parent.

d. Debited to Retained Earnings—Subsidiary and Minority Interest in Net Assets of Subsidiary.