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  3. zest owns 65% of cinn, inc. on january 1, year 1 z

Zest owns 65% of Cinn, Inc. On January 1, Year 1 Zest sold equipment with...

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Accounting

Zest owns 65% of Cinn, Inc. On January 1, Year 1 Zest sold equipment with an original cost of $80,000 and a carrying amount of $48,000 to Cinn for $83,356. Zest had been depreciating the equipment over a 5-year period using straight-line depreciation with no residual value. Cinn is using straight-line depreciation over 3 years, with no residual value. In Zest's December 31 Year 1 consolidating worksheet, by what amount should depreciation expense be adjusted? (No sign needed for an increase; use a negative sign to indicate a decrease.)

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