At the beginning of 2018, a parent company sold a patent, carried on its books at $4,000,000, to its subsidiary for $3,000,000. The patent had a remaining life of five years and straight-line amortization is used. It is now the end of 2020, and the subsidiary still owns the patent. On the 2020 consolidation working paper, eliminations (I):

increase the patent by $800,000.

reduce the parents investment account by $600,000.

increase the subsidiarys beginning retained earnings by $200,000.

reduce amortization expense by $400,000.