Prax, Inc. and Meng Co. are related companies subject to consolidation. On 1/1/2X, Prax, Inc. sold machinery to Meng Co. for $200,000 cash that had an original purchase price of $240,000, useful life of 4 years, accumulated depreciation at the time of sale of $180,000, and was expected to be continued to be depreciated at $60,000 per year had it not been sold. Meng Co. placed the machine in service on 1/1/2X, and is depreciating it over 2 years using straight-line depreciation. The portion of the elimination entry at the time of consolidation at year-end 2X' to account for any required adjustment to the depreciation expense account would be:

a)

Debit to Depreciation Expense of $10,000

b)

Credit to Depreciation Expense of $10,000

c)

Credit to Depreciation Expense of $40,000

d)

Credit to Depreciation Expense of $70,000