Mortar Corporation Acquired 80 Percent of Granite Corporation's Voting Common

Mortar Corporation acquired 80 percent of Granite Corporation's voting common stock on January 1,2007.On December 31,2008,Mortar received $390,000 from Granite for a equipment Mortar had purchased on January 1,2005,for $400,000.The equipment is expected to have a 10-year useful life and no salvage value.Both companies depreciate equipments on a straight-line basis.
-Based on the preceding information,in the preparation of the 2009 consolidated balance sheet,accumulated depreciation will be:

A) debited for $160,000 in the eliminating entries.
B) credited for $160,000 in the eliminating entries.
C) credited for $135,000 in the eliminating entries.
D) debited for $135,000 in the eliminating entries.