Peace Limited acquired a 60% interest in Patience Limited on 1 January 2017. At the date of the acquisition of the investment in Patience Limited, the inventory of Patience Limited was revalued upwards with R20 000. No revaluations have been recorded by the subsidiary. The original cost was R150 000.

By 31 September 2017 the inventory was disposed of and the subsidiary recorded a profit of R40 000.

The corporate tax rate is 28% and capital gains are taxed at 80% of the corporate tax rate.

For consolidation purposes the following line-item(s) in the consolidated financial statements of the Peace Limited Group for the year ended 31 December 2019 will be affected by the consolidation journal entries that pertain to the revaluation and subsequent sale of the inventory. Choose the most correct answer.

	a.	The "Inventory" line-item will be increased with R20 000, with no subsequent decrease.
	b.	The "Revaluation surplus" line-item in the consolidated statement of financial position will amount to R14 400.
	c.	The "Inventory" line-item will be increased with R20 000, and decreased with R20 000 with no other line-items affected.
	d.	The "Other income" line-item will be decreased with R20 000, "Income tax" line-item will be decreased with R5 600 and "Retained earnings" line-item will decrease by R14 400.
	e.	The "Retained earnings" line-item will decrease by R14 400.