Explain the consolidated income statement


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.What is the amount of depreciation on the 2006 consolidated income statement?

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Accounting Basics: Explain the consolidated income statement
Reference No:- TGS0681410

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