Rutgers Co. owned all of the voting common stock of NYU Co. On January 2, 2023, Rutgers sold

equipment to NYU for $125,000. The equipment cost Rutgers $160,000. At the time of the transfer, the

balance in accumulated depreciation was $40,000. The equipment had a remaining useful life of five

years and a $0 salvage value. Both entities use the straight-line method of depreciation.

At what amount should the equipment (net of depreciation) be included in the consolidated balance sheet

dated December 31, 2024?

A) $131,000.

B) $96,000.

C) $95,000.

D) $80,000.

E) $85,000.