Monica, Inc. and Stuart, Inc. are related companies subject to consolidation. During the year, Stuart, Inc. rented a sales office to Monica, Inc. for $60,000 and the rent has all been paid for in full. The elimination entry at the time of consolidation for this transaction would be:

a)

No entry required as it has been paid for and will self-eliminate

b)

Debit Cash Monica, Inc. $60,000; Credit Cash Stuart, Inc. $60,000

c)

Debit Rent Income $60,000; Credit Rent Expense $60,000

d)

Debit Rent Expense $60,000; Credit Rent Income $60,000