Jay Inc. owns 80% of Tesla Inc. and uses the cost method to account for its investment The 2020 income statements of both companies are shown below Joy $100.000 $30,000 Tesla $50.000 $20.000 Gross Profit Miscellaneous Revenues/Losses Depreciation Expense Income Tax Expense Net Income $15.000 $20,000 $20.000 $30.000 $ 9.000 On January 1, 2020, Tesla sold equipment to Jay at a profit of $3,000. The equipment had a remaining useful life of twenty years on that date. Both companies are subject to an effective tax rate of 40% The amount of depreciation expense appearing on Jay's 2020 Consolidated Income Statement would be Multiple Choice Multiple Choice o $34,880. o $15,000. o $35,000. o S34,850