At acquisition date, a wholly owned subsidiary had the following equity items.

Retained earnings

$28 000

Share capital

$60000

In the year following the acquisition, the subsidiary transferred $20000 from pre-acquisition retained earnings to a general reserve account. At the reporting date following the reserve transfer, which of the following consolidation adjustments is needed?

i. DrRetained earnings$20000

CrGeneral reserve$20000

ii. DrGeneral reserve$20000

CrShares insubsidiary$20000

iii. DrShares in subsidiary$20000

CrRetainedearnings$20000

iv. DrGeneral reserve$20000

CrTransfer to general reserve$20000