E 6-10 Inventory items of parent capitalized by subsidiary Pop Industries manufactures heavy equipment used in construction and excavation. On January 3, 2016, Pop sold a piece of equipment from its inventory that cost $360,000 to its 60 percent–owned subsidiary, Son Corporation, at Pop’s standard price of twice its cost. Son is depreciating the equipment over six years using straight-line depreciation and no salvage value.

REQuIRED 1. Determine the net amount at which this equipment will be included in the consolidated balance sheets for Pop Industries and Subsidiary at December 31, 2016 and 2017.