Assume that a parent company owns a 100% controlling interest in its long-held subsidiary. On December 31, 2022, a parent company sold equipment to the subsidiary for $96,000. The equipment originally cost the parent $168,000, and accumulated depreciation through December 31, 2022 was $28,000. The parent depreciated the equipment for 12 years using the straight-line method and no salvage value. After the transfer, the subsidiary will depreciate the equipment for 10 years with no salvage value. Related to the transferred equipment, which of the following items is true regarding the preparation of the consolidated financial statements for the year ending December 31, 2022