At the beginning of 2011, a parent company sold a patent, carried on its books at $4,000,000, to its subsidiary for $3,000,000. The patent had a remaining life of five years and straight-line amortization is used. It is now the end of 2013, and the subsidiary still owns the patent. On the 2013 consolidation working paper, eliminations I:
a. increase the patent by $800,000.
b. reduce the parent's investment account by $600,000.
c. increase the subsidiary's beginning retained earnings by $200,000.
d. reduce amortization expense by $400,000.