On January 1, 2020, P Corp (a 100% owner of S Corp's common stock) sold equipment with a book value of $245,000 to S Corp. for $275,000. S Corp is depreciating the equipment over a ten-year life by the straight-line method. The net adjustments to compute 2020 and 2021 consolidated income would be an increase (decrease) of 2020 2021

a. ($30,000) $0 b. ($30,000) $3,000 c. ($27,000) $0 d. ($27,000) $3,000