In 2004, Parrot Company sold land to its subsidiary, Tree Corporation, for $12,000. It had a book value of $10,000. In the next year, Tree sold the land for $18,000 to an unaffiliated firm. The 2004 unrealized gain
A-was deferred until 2006.
B-was eliminated from consolidated net income by a working paper entry that credited land $2,000.
C-made consolidated net income $2,000 less than it would have been had the sale not occurred.
D-made consolidated net income $2,000 greater than it would have been had the sale not occurred.