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  3. 3. (14) on january 1, 2006, payton co. sold equipm

3. (14) On January 1, 2006, Payton Co. sold equipment to its subsidiary, Starker Corp.,...

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Accounting

3. (14) On January 1, 2006, Payton Co. sold equipment to its subsidiary, Starker Corp., for $115,000. The equipment had cost $125,000, and the balance in accumulated depreciation was $45,000. The equipment had an estimated remaining useful life of eight years and $0 salvage value. Both companies use straight-line depreciation. On their separate 2006 income statements, Payton and Starker reported depreciation expense of $84,000 and $60,000, respectively. B. What is the amount of depreciation on the 2006 consolidated income statement?

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