At the beginning of 2021, a subsidiary sells equipment with a book value of $1,500,000 to its parent for $2,000,000. The equipment has a remaining life of 5 years, straight-line. At the beginning of 2024, the parent sells the equipment to an outside company for $1,800,000. At what amount should the 2023 consolidated income statement report depreciation expense, and what is the 2024 consolidated gain on sale of the equipment?

Select one:

a.

2023 consolidated	2024 consolidated gain
depreciation expense
$300,000	$900,000

b.

2023 consolidated	2024 consolidated gain
depreciation expense
$100,000	$900,000

c.

2023 consolidated	2024 consolidated gain
depreciation expense
$300,000	$1,200,000

d.

2023 consolidated	2024 consolidated gain
depreciation expense
$100,000	$1,200,000