Pead Corporation established a new subsidiary and transferred to it assets with a cost of $90,000 and a book value of $75,000. The assets had a fair value of $100,000 at the time of transfer. The transfer will result in

a. A reduction of net assets reported by Pead Corporation of $90,000.

b. A reduction of net assets reported by Pead Corporation of $75,000.

c. No change in the reported net assets of Pead Corporation.

d. An increase in the net assets reported by Pead Corporation of $25,000.