32. A 75%-owned subsidiary sells land costing it $100,000 to its parent in 2023 for $150,000. The parent still holds the land at the end of 2025. What eliminating entry (I) is required on the 2025 consolidation working paper?

Select one:

a. Debit the subsidiarys beginning retained earnings and credit land for $12,500.

b. Debit the subsidiarys beginning retained earnings and credit land for $50,000.

c. Debit investment in subsidiary and credit land for $12,500.

d. Debit investment in subsidiary and credit land for $50,000.

33.

A parent sells land costing it $100,000 to its 75%-owned subsidiary in 2023 for $150,000. The subsidiary still holds the land at the end of 2025. What eliminating entry (I) is required on the 2025 consolidation working paper?

Select one:

a. Debit the subsidiarys beginning retained earnings and credit land for $37,500.

b. Debit the subsidiarys beginning retained earnings and credit land for $50,000.

c. Debit investment in subsidiary and credit land for $37,500.

d. Debit investment in subsidiary and credit land for $50,000.