Clemente Co.owned all of the voting common stock of Snider Co.On January 2,2009,Clemente sold some equipment to Snider for $125,000.The equipment had cost $140,000.At the time of the sale,the balance in accumulated depreciation was $40,000.The equipment had a remaining useful life of five years and a $0 salvage value.Straight-line depreciation is used by both Clemente and Snider.At what amount should the equipment (net of depreciation)be included on the consolidated balance sheet dated December 31,2009?

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The equipment's book value at the time of sale was $100,000 ($140,000 cost - $40,000 accumulated depreciation). After one year of depreciation at Snider, the net book value would be $80,000 ($100,000 - $20,000 depreciation for one year).