A parent company acquires all of a subsidiary's voting stock at the beginning of 2015. At the date of acquisition, the subsidiary's equipment had a book value of $40 million and a fair value of $25 million. The equipment had a 10-year remaining life, straight-line.
Consolidation eliminating entry (O), on the consolidation working paper for 2018, has what effect on depreciation expense?
a. Credit for $6 million
b. Credit for $1.5 million
c. Debit for $1.5 million
d. Debit for $6 million