d. SU.UUU Pelit made by Polo 27. Scroll. Inc., a wholly owned subsidiary of Pim, Inc. began operations on January 1, Year 4. The following information is from the condensed Year 4 income statements: Pim Scroll $100,000 Sales to Scroll 400.000 300,000 Sales to others $500,000 300,000 Cost of goods sold: 80,000 Acquired from Pim 350,000 190,000 Acquired from others $150,000 $30,000 Gross profit Depreciation 40,000 10,000 Other expenses 60,000 15.000 $50,000 $5,000 Income from operations Gain on sale of equipment to Scroll 12.000 Income before income taxes $38,000 $5,000 Additional Information: Sales by Pim to Scroll are made on the same terms as those made to third parties. Equipment purchased by Scroll from Pim for $36,000 on January 1, Year 4, is depreciated using the straight-line method over 4 years. Scroll's depreciation on the equipment is determined based Pim's original estimates of the asset's economic life and residual value. What amount should be reported as depreciation expense in Pim's consolidated income statement? a. $50,000 b. $47,000 c. $44,000 d. $41,000