A parent company sells equipment to its subsidiary on January 1, 2018 for $90,000. At the time, the equipment was reported on the parent's books at a net book value of $60,000. The remaining life of the equipment as of January 1, 2018 is six years, and straight-line depreciation, no residual value is used.

At what net value should this equipment be reported on a December 31, 2020 consolidated balance sheet (three years after the intercompany equipment sale)?

Select one:

A.$45,000

B.$90,000

C.$30,000

D.$40,000

A is incorrect