ABC Ltd sold an item of plant to its subsidiary, DEF Ltd, on 1 January 2019 for $50000. The asset had cost ABC Ltd $60000 and had an useful life of 6 years when acquired on 1 January 2017 from an external party. The adjustment necessary on consolidation in relation to the transfer of plant as at 30 June 2019 will result in:

Select one:

a.an increase in current year profit.

b.a decrease in current year profit.

c.an increase in current year profit and non-current assets.

d.a decrease in current year profit and non-current assets.