On January 1, 2016, a parent loaned $30,000 to its 100%-owned subsidiary on a 5-year, 8% note. The note requires a principal payment at the end of each year of $6,000 plus payment of interest accrued to date. The following accounts require adjustment in the consolidation process: Controlling

Assets Debt Retained Earnings

a. Yes Yes Yes

b. Yes Yes No

c. No No No

d. No No Yes