Stark Company, a 90% owned subsidiary of Parker, Inc., sold land to Parker on May 1, 2017, for $80,000. The land originally cost Stark $85,000. Stark reported net income of $200,000, $180,000, and $220,000 for 2017, 2018, and 2019, respectively. Parker sold the land purchased from Stark in 2017 for $92,000 in 2019. Both companies use the equity method of accounting. Compute Stark's reported gain or loss relating to the land for 2019.

$7,000 gain.

$5,000 loss.

$ 0.

$5,000 gain.

$7,000 loss.