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question on january 1 2013 payton co sold equipment to its subsidiary starker corp f 4293148

Question

On January 1, 2013, Payton Co. sold equipment to its subsidiary,Starker Corp., for $115,000. The equipment had cost $125,000, andthe balance in accumulated depreciation was $45,000. The equipmenthad an estimated remaining useful life of eight years and $0salvage value. Both companies use straight-line depreciation. Ontheir separate 2013 income statements, Payton and Starker reporteddepreciation expense of $84,000 and $60,000, respectively. Theamount of depreciation expense on the consolidated income statementfor 2013 would have been

A. $144,000.

B. $148,375.

C. $109,000.

D. $134,000.

E. $139,625.

The answer is E but I am not sure how to get it.

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