On January 1, 2012, Shrimp Corporation purchased a delivery truck with an expected useful life of five years, and a salvage value of $8,000. On January 1, 2014, Shrimp sold the truck to Pacet Corporation. Pacet assumed the same salvage value and remaining life of three years used by Shrimp. Straight-line depreciation is used by both companies. On January 1, 2014, Shrimp recorded the following journal entry:

Debit Credit

Cash 50,000

Accumulated depreciation 18,000

Truck 53,000

Gain on Sale of Truck 15,000

Pacet holds 60% of Shrimp. Shrimp reported net income of $55,000 in 2014 and Pacet's separate net income (excludes interest in Shrimp) for 2014 was $98,000.

7) In preparing the consolidated financial statements for 2014, the elimination entry for depreciation expense was a

A) debit for $5,000.

B) credit for $5,000.

C) debit for $15,000.

D) credit for $15,000.

Why credit for 5000 depreciation expense?