Compute the amount of depreciation expense

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Question - On January 1, 2018, Spring Co. sold equipment to its subsidiary, Winter Corp., for $120,000. The equipment had cost $130,000, 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 2018 income statements, Spring and Winter reported depreciation expense of $84,000 and $60,000, respectively. Compute the amount of depreciation expense on the consolidated income statement for 2018?

Reference no: EM132510184

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