A subsidiary sells land costing \($1,000,000\) to its parent in 2014 for \($1,400,000\). The parent owns 80 percent of the subsidiary’s stock. In 2017, the parent sells the land to an outside party for \($550,000\). What eliminating entry (I) is required on the 2017 consolidation working paper?

a Debit the subsidiary’s beginning retained earnings and credit the loss on sale of land for $400,000.

b. Debit investment in subsidiary and credit the loss on sale of land for $400,000.

c. Debit the subsidiary’s beginning retained earnings and credit the loss on sale of land for $450,000.

d. Debit investment in subsidiary and credit the loss on sale of land for $450,000.