7. On April 1, 2014, Narrow Company sold equipment to its wholly owned subsidiary

Thatch Corporation. At the time of the transfer, the asset had a cost of $240,000 and

accumulated depreciation of $90,000. The selling price was $204,000. The two

companies agreed on a ten-year estimated remaining life.

Thatch's profit numbers were $300,000, $360,000 and $390,000 for 2014, 2015 and

2016, respectively. Narrow received dividends from Thatch of $120,000, $150,000 and

180,000 for 2014, 2015, and 2016, respectively.

What was the amount of the credit to depreciation expense on the 2015 consolidation

worksheet?

A) $-0-

B) $4,050

C) $5,400

D) $2,700