Penn owns 100% of Senn. On January 1, 20X4, Penn sold equipm…
Penn owns 100% of Senn. On January 1, 20X4, Penn sold equipment with an original cost of $40,000 and a carrying amount of $24,000 to Senn for $36,000. Penn had been depreciating the equipment over a five-year period using straight-line depreciation with no residual value. Senn is using straight-line depreciation over three years with no residual value. In Penn’s December 31, 20X4, consolidating worksheet, by what amount should depreciation expense be decreased?
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