A Ltd sold an item of plant to B Ltd on 1 January 2017 for $25,000. The asset had cost A Ltd $30,000 when acquired on 1 January 2015. At that time the useful life of the plant was assessed at 6 years. The adjustment necessary on consolidation in relation to the transfer of plant as at 30 June 2018 will result in:

A decrease in retained earnings and an increase in current year profit.

A decrease in retained earnings and a decrease in current year profit.

An increase in retained earnings and a decrease in current year profit.

An increase in retained earnings and an increase in current year profit.