Stark Company, a 90% owned subsidiary of Parker, Inc., sold land to Parker on May 1, 2020, for $80,000. The land originally cost Stark $85,000. Stark reported net income of $200,000, $180,000, and $220,000 for 2020, 2021, and 2022, respectively. Parker sold the land purchased from Stark for $92,000 in 2022. Both companies use the equity method of accounting.

Which of the following will be included in a consolidation entry for 2021?

A. Debit RE for 5,000

B. Credit RE for 5,000

C. Debit Investment in Subsidiary for 5,000

D. Credit Investment in Subsidiary for 5,000

E. Credit Land for 5,000