Kate Ltd gained control of Tony Ltd on 31 December 2018. On that date, the carrying amount of Tony Ltds equipment was $20,000 lower than its fair value. The equipment had a residual value of zero. On 31 December 2018, the equipment had a remaining useful life of 4 years. For the year ended 31 December 2019, the consolidation adjustment in relation to the depreciation of the equipment will include the following line:

a.

Cr Depreciation expense $5 000

b.

Dr Retained profits (SOP) $5 000

c.

Dr Depreciation expense $5 000

d.

Dr Accumulated depreciation - equipment $5 00