At the beginning of 2022, a subsidiary sells equipment with a book value of $400,000 to its parent for $500,000. At the time of the sale, the equipment had a remaining life of 5 years, straight-line. The parent still has the equipment at the end of 2023 (2 years later). On the consolidated financial statements for 2023, how is the equipment reported?

Question 15 options:

a)	Book value $200,000, depreciation expense $100,000
b)	Book value $240,000, depreciation expense $80,000
c)	Book value $320,000, depreciation expense $80,000
d)	Book value $400,000, depreciation expense $100,000