Pat Corporation Acquired 80 Percent of Smack Corporation's Voting Common

Pat Corporation acquired 80 percent of Smack Corporation's voting common stock on January 1,20X7.On December 31,20X8,Pat received $390,000 from Smack for equipment Pat had purchased on January 1,20X5,for $400,000.The equipment is expected to have a 10-year useful life and no salvage value.Both companies depreciate equipment on a straight-line basis.
-Based on the preceding information,in the preparation of the 20X9 consolidated financial statements,equipment will be:

A) debited for $1,000.
B) debited for $10,000.
C) credited for $15,000.
D) debited for $25,000.