12. Pittsford Company purchased bonds from Shay Company on the open market at a premium. Shay Company is a 100% owned subsidiary of Pittsford Company. Pittsford intends to hold the bonds until maturity. In a consolidated balance sheet, the difference between the bond carrying values in the two companies would be: a. included as a decrease to retained earnings. b. included as an increase to retained earnings. c. reported as a deferred debit to be amortized over the remaining life of the bonds. d. reported as a deferred credit to be amortized over the remaining life of the bonds.