AAA Ltd. is a wholly owned subsidiary of BBB Co. At the beginning of 20X4, BBB acquired a machine for $350,000 and sold it to AAA for $437,500. The machine will be depreciated over five years using the straight-line method with no residual value. Seven years after AAA bought the machine from BBB, the machine is still in use. In preparing its consolidated financial statements, what entry should BBB make?

A. DR Retained earnings 87,500 CR Machine 87,500

B. No entry is required at this time

C. DR Accumulated depreciationmachine 87,500 CR Machine 87,500

D. DR Retained earnings 87,500 CR Accumulated depreciation 87,500