On January 1, 2018, Post Company acquired an 80% ownership in Stake Company. The fair value of Stake Companys net assets was the same as book value except for the following: The fixed assets of Stake Company, whose remaining life was 20 years, had a fair value in excess of the book value of $100,000. Which is true regarding the consolidation journal entry for the undervalued fixed assets on December 31, 2018?

Select one:

a. Debit depreciation expense for $5,000.

b. Debit accumulated depreciation for $5,000.

c. Debit fixed assets for $5,000.

d. Credit fixed assets for $100,000.