During the year ended 30 June 2019, a subsidiary entity sold inventories to a parent entity for $50 000. The inventories had previously cost the subsidiary entity $45 000. By 30 June 2019 the parent entity had sold 75% of the inventories to a party outside the group. The company tax rate is 30%. The adjustment entry in the consolidation worksheet at 30 June 2020 is:

I.	Sales revenue		Dr		50 000
	Cost of sales		Cr				48 750
	Inventories		Cr				1 250
	Deferred tax asset		Dr		375
	Income tax expense		Cr				375
II.	Retained earnings		Dr		3 500
	Income tax expense		Dr		1 500
	Cost of sales		Cr				5 000
III.	Retained earnings		Dr		875
	Income tax expense		Dr		375
	Cost of sales		Cr				1250
IV.	Retained earnings		Dr		1 250
	Inventories		Cr				1 250
	Deferred tax asset		Dr		375
	Retained earnings		Cr				375

The answer is the third one. Can someone show the working of it? (Journal entries)