Atthe beginning of 2013, a subsidiary sold cquiptneneeiel 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 2016, and the parent still owns the equipment. On the 2016 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.