10.

A subsidiary sells land costing it $200,000 to its parent in 2020 for $300,000. The parent owns 80 percent of the subsidiarys stock. The parent still holds the land at the end of 2022. What eliminating entry (I) is required on the 2022 consolidation working paper?

Select one:

a. Debit investment in subsidiary and credit land for $100,000.

b. Debit the subsidiarys retained earnings and credit land for $20,000.

c. Debit the subsidiarys beginning retained earnings and credit land for $100,000.