Bates company uses the equity method to account for its 25% investment in Hill Ltd. Hill's net assets have a fair value of $22 million and a book value of $20, million. The difference relates to land and a building, $1.5 million of which is associated with the building (50-year useful life). Bates's journal entry for amortization will include a:

Debit to investment in investee of 7500

Credit to investment in investee of 10000

Debit to equity in investee income of 7500

Credit to equity in investee income of 10000