_____ on 1/3/06, Sayex (An 80%-Owned Subsidiary of Payex) Sold

_____ On 1/3/06, Sayex (an 80%-owned subsidiary of Payex) sold equipment costing $100,000 to Payex for $45,000. At the time of the sale, the equipment had a book value of $20,000 (having been depreciated using the straight-line method, an original life of 10 years, and no estimated salvage value) . Payex continued depreciating the equipment by using the straight-line method but assigned a remaining life of 5 years.
What is the adjustment to Depreciation Expense in preparing the consolidation worksheet at 12/31/07?

A) A debit of $5,000.
B) A credit of $5,000.
C) A debit of $12,500.
D) A credit of $12,500.
E) None of the above.