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:

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

		debit for $5,000.
		debit for $15,000.
		credit for $15,000.
		credit for $5,000.

Cash Accumulated depreciation Truck Gain on Sale of Truck Debit 50,000 18,000 Credit 53,000 15,000