need a very detailed explanation

Bates Company uses the equity method to account for its 25% investment in Hills Lidd Hills' 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' journal entry for amortization will include a: A. Debit to investment in investee of $7,500 B. Credit to investment in investee of $10,000. C. Debit to equity in investee income of $7,500 D. Credit to equity in investee income of $10,000