12. During the current period, a subsidiary entity sold inventories to its parent entity at a profit of $4 000. The goods had originally cost the subsidiary $10 000. At the end of the year all the inventories were still on hand. The adjustment entry to deal with this transaction on consolidation would include the following line item:

a) Dr Retained earnings (subsidiary) and Cr Inventories (Parent) $4 000.

b) Cr Inventories (Parent) $6 000 and Dr Retained earnings (subsidiary).

c) Dr Retained earnings (subsidiary) and Cr Inventories (Parent) $10 000.

d) Dr Retained earnings (subsidiary) and Cr Inventories (Parent) $14 000.