Amount of depreciation expense on consolidated income

Reference no: EM13139528

On January 1, 2009, 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 2009 income statements, Payton and Starker reported depreciation expense of $84,000 and $60,000, respectively. The amount of depreciation expense on the consolidated income statement for 2009 would have been :

A. $144,000

B. $148,375

C. $109,000

D. $134,000

E. $139,625

Reference no: EM13139528

Questions Cloud

What caused existing cost system to fail : What caused existing cost system to fail in the 1980's? What symptoms and evidence indicate cost system failure?

Legislative history : I am beginning my legislative history and i decided to choose to do it on The Protection of Children From sexual predators act of 1998 and i just need to know what policy area this would fall under because i need to begin by introducing the policy ar..

What should hess record as gain on retirement : Hess uses straight-line amortization. On March 1, 2011, Hess retired $400,000 of these bonds at 98 plus accrued interest. What should Hess record as a gain on retirement of these bonds? Ingore taxes.

How many types of gametes can the f1 plants make : A lilly from a true-breeding line with white flowers and short corollas (line A) is crossed to a lilly from a true-breeding line with black flowers and long corollas (line B).

Amount of depreciation expense on consolidated income : On their separate 2009 income statements, Payton and Starker reported depreciation expense of $84,000 and $60,000, respectively. The amount of depreciation expense on the consolidated income statement for 2009 would have been :

Discuss the book of genesis : Discuss the Book of Genesis in terms of authorship, name, purpose and religious character, a divinely-inspired book, the general importance of the book, and an outline main events.

Probability-average salary assembly line workers is higher : What is the probability that a randomly selected assembly line worker earns more than $22,000? What is the probability that the average salary of 5 assembly line workers is higher than $22,000?

What type of allelic interaction is this : A lilly from a true-breeding line with white flowers and short corollas (line A) is crossed to a lilly from a true-breeding line with black flowers and long corollas (line B). The resulting offspring, the F1, are all red-flowered, with corollas of..

What was shareholders equity as of december : What ($ in 000s) was shareholders' equity as of December 31, 2012? What ($ in 000s) was shareholders' equity as of December 31, 2012?

User Account

All Pages