Pet. Co owns 75% of Saber Co. Wool Co. (an unrelated company), a holder of a $1,000,000 Pet Co. bond, collected the interest due on March 31, 20x1, and then sold the bond to Saber Co. for $975,000. On that date, Pet (75% owner of Saber) had a $1,075,000 carrying amount for this bond. Which was the effect of Saber's purchase of Pet's bond on the retained earnings and non-controlling interest amounts reported in Pet's March 31, 20x1, consolidated balance sheet? Why?

A. Retained earnings Noncontrolling interest $100,000 increase $0

B. Retained earnings Noncontrolling interest $75,000 increase $25,000 increase

C. Retained earnings Noncontrolling interest $0 $25,000 increase

D. Retained earnings Noncontrolling interest $0 $100,000 increase