Stark Company, a 90% owned subsidiary of Parker, Inc., sold land to Parker on May 1, 2010, for $85,000. The land originally cost Stark $80,000. Stark reported net income of $200,000, $180,000, and $220,000 for 2010, 2011, and 2012, respectively. Parker sold the land it purchased from Stark in 2010 for $92,000 in 2012.

Compute Parker's reported gain or loss relating to the land for 2012.

A, 12,000 gain

B. 5,000 loss

C. $12,000 loss

D. $7,000 gain

E. $7,000 loss