During 2012, XYZ Co. sold inventory to its wholly-owned subsidiary, ABC Co. The inventory cost $30,000 and was sold to ABC for $44,000. From the perspective of the combination, which one of the following effects is correct? (Assuming all inventory is sold by ABC at year end) O a. Ending inventory is overstated O b. Cost of goods sold is overstated O c. Sales are understated d. None of the given answers O e. Beginning Inventory is understated