Meyer Jewelers Purchased 18,000,000 of the Outstanding 60,000,000 Shares of Angel

Meyer Jewelers purchased 18,000,000 of the outstanding 60,000,000 shares of Angel & Associates. Meyer has significant influence over Angel, so Meyer will account for this investment using the equity method. On the purchase date, Angel had net assets with a book value of $7,300,000 and a fair value of $7,900,000. The difference in fair value is a result of the higher fair value of equipment than its book value. The remaining useful life of this equipment is 25 years. Assuming this investment was purchased on 1/1, which of the following is the correct journal entry to record the difference in net assets for this investment on 12/31?

A) $$\begin{array} { | c | r | r | } \hline \text { Investment in Angel \& Associates } & 7,200 & \\\hline \text { Income from Investment } & & 7,200 \\\hline\end{array}$$
B) $$\begin{array} { | l| r | r | } \hline \text { Depreciation Expense } & 24,000 & \\\hline \text { Accumulated Depreciation - Investment Assets } & & 24,000 \\\hline\end{array}$$
C) $$\begin{array} { |l | r | r | } \hline \text { Depreciation Expense } & 24,000 & \\\hline \text { Investment in Angel \& Associates } & & 24,000 \\\hline\end{array}$$
D) $$\begin{array} { | l | r | r | } \hline \text { Income from Investment } & 7,200 & \\\hline \text { Investment in Angel \& Associates } & & 7,200 \\\hline\end{array}$$