The Following Selected Account Balances and Analyses of Retained Earnings

The following selected account balances and analyses of retained earnings were obtained from the separate company financial statements of Pale Inc. and its 100%-owned created subsidiary, Sale Inc. (Pale's only subsidiary) at the end of 2006:
Required:
For each of the above listed items, how would the item be reported in Pale's consolidated financial statements? Use the following list of possible answers:
-______(item 3)

A) Report at the amount shown in Sale's separate statements.
B) Report at the amount shown in Pale's separate statements.
C) Report at the sum of the amounts shown in Pale's and Sale's separate statements.
D) Report at less than the sum of the amounts shown in Pale's and Sale's separate statements.
E) Create this item in the consolidation process.
F) Do not report this item in the consolidated statements.
G) Do not report this item in the consolidated statements or in the separate statements of either Pale or Sale.