At the Beginning of 2019, a Parent Sells Equipment with a Book

At the beginning of 2019, a parent sells equipment with a book value of $400,000 to its subsidiary for $500,000. At the time of the sale, the equipment had a remaining life of 5 years, straight-line. The subsidiary sold the equipment to an outside buyer for $470,000 at the end of 2021 (3 years later) . The consolidation eliminating entry needed to consolidate the accounts of the parent and subsidiary at the end of 2021 has what effect?

A) Decrease depreciation expense by $40,000
B) Increase gain on sale by $60,000
C) Increase investment in subsidiary by $60,000
D) Reduce equipment (net) by $80,000