As January 1, 2016, Johnson Corporation sold equipment with a three-year remaining useful life and a book

value of P10,000 to its 70%-owned subsidiary for a price of P11,500. In the consolidation working papers for the

year ended December 31, 2016, the elimination entry concerning this transaction will include:

a.

A debit to equipment for P1,500.

b.

A credit to depreciation expense for P1,500.

c.

A debit to gain on equipment for P1,500.

d.

A debit to gain on equipment sale for P1,500.