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 income statement,depreciation expense will be:

A) debited for $25,000 in the consolidating entries.
B) credited for $15,000 in the consolidating entries.
C) debited for $15,000 in the consolidating entries.
D) credited for $25,000 in the consolidating entries.