On January $1,20$X$5,$ Spring Company purchased a machine with an expected economic life of ten years. On January $1,20$X$8,$ Spring sold the machine to Peterson Corporation and

recorded the following entry:

Peterson Corporation holds $80$ percent of Spring's voting shares. Spring reported net income of $$200,000,$ and Peterson reported income from its own operations of $$380,000$ for

$20$X$8.$ There is no change in the estimated economic life of the equipment as a result of the intercorporate.transfer. Based on the preceding information, in the preparation of the

$208$ consolidated balance sheet, in the consolidation entry machine will be:

debited for $$40,000.$

credited for $$70,000.$

debited for $$50,000.$

debited for $$25,000.$