On January 1st of this year Company A sold equipment to its subsidiary, Company B, for $125K. The equipment originally cost Company A $150K. At the time of the sale, the balance in accumulated depreciation was $70K. The equipment had an estimated remaining useful life of 8 years with no salvage value. Both companies use straight-line depreciation.

On their separate income statements in 2021 the companies reported depreciation expense as follows:

-Company A: $86K

-Company B: $64K

What amount of depreciation expense would be reported in the consolidated income statement in 2021?