Problem 8 Please Help

8. A parent sells $30.,000,000 retail value of merchandise to its subsidiary during 2019. The subsidiary's begin- ning inventory for 2019 contains $1,000,000 in merchandise purchased from the parent, including a markup of $200.000. The subsidiary's ending inventory for 2019 contains $1,500,000 in merchandise purchased from the parent. The markup included in the ending inventory balance is $225,000. On the 2019 consolida tion working paper, eliminations (D) reduce ending inventory by $200,000 b. a. reduce beginning retained earnings by $225,000 reduce cost of goods sold by $225,000 d. c. increase the parent's investment account by $200,000