Popper Company established a subsidiary and transferred equipment with a fair value of $72,000 to the subsidiary. Popper had purchased the equipment with a 10-year expected life 4 years earlier for $100,000 and has used straight-line depreciation with no expected residual value. At the time of the transfer, the subsidiary should record

a. Equipment at $72,000 and no accumulated depreciation.

b. Equipment at $60,000 and no accumulated depreciation.

c. Equipment at $100,000 and accumulated depreciation of $40,000.

d. Equipment at $120,000 and accumulated depreciation of $48,000.