P acquired 100% shares of S on Jan 1, 2018 for $200,000. On that date, S reported common stock of $100,000 and retained earnings of $60,000. All assets have of S have a fair value equal to the book value except for equipment that has a fair value of 40,000 above the book value. This equipment has a remaining useful life of 4 years.

What is the correct consolidation entry to adjust the value of equipment to its fair value to prepare the consolidated balance sheet prepared on Dec 31 2018?

		Debit Equipment $30,000, Credit Investment account $30,000
		Debit Investment in S $ 40,000, credit Land $40,000
		Debit Equipment $ 40,000, Credit Investment account $40,000
		Debit Equipment $40,000, Credit Investment account $30,000, credit NCI in net assets $10,000