Can you show me how to get the answer of $1000?

On April 1, 2020, Republic Company sold equipment to its wholly owned subsidiary, Barre Corporation, for $40,000.At the time of the transfer, the asset had an original cost (to Republic) of $60,000 and accumulated depreciation of $25,000.The equipment has a five year estimated remaining life.

Barre reported net income of $250,000, $270,000 and $310,000 in 2020, 2021, and 2022, respectively.Republic received dividends from Barre of $90,000, $105,000 and $120,000 for 2020, 2021, and 2022, respectively.

Topic: Intercompany Sale of Depreciable Assets

LO: 4

38.What was the amount of the credit to depreciation expense on the 2021 consolidation worksheet?

a. $750

b.$-0-

c.$1,000

d.$1,600

Answer: c