Dunn Corporation owns 100 percent of Grey Corporation’s common stock. On January 2, 2020, Dunn sold to Grey $40,000 of machinery with a carrying amount of $30,000. Grey is depreciating the acquired machinery over a five-year remaining life by the straight-line method. The net adjustments to compute 2020 and 2021 consolidated net income would be an increase (decrease) of

       2020                               2021__
a. $(8,000) ....................     $ 2,000
b. $(8,000) ....................            –0–
c. $(10,000) ...................    $ 2,000
d. $(10,000)....................          –0–