DEPRECIATION EXPENSE At the beginning of the current period, Jessica Ltd sold a depreciable asset to its wholly owned subsidiary, Amelie Ltd, for $80 000. Jessica Ltd had originally paid $200 000 for this asset, and by the time of sale to Amelie Ltd had charged accumulated depreciation of $150 000. This asset is used differently in Amelie Ltd from how it was used in Jessica Ltd; thus, whereas Jessica Ltd used a 10% p.a. straightline depreciation method, Amelie Ltd uses a 20% p.a. straight-line depreciation method. In calculating the depreciation expense for the consolidated group (as opposed to that recorded by Amelie Ltd), the group accountant, Rui Xue, is unsure of which amount the depreciation rate should be applied to ($200 000, $50 000 or $80000) and which depreciation rate to use (10% or 20%). Required Provide a detailed response, explaining which depreciation rate should be used and to what amount it should be applied.