At the beginning of 2016, a subsidiary sells equipment with a book value of $400,000 to its parent for $500,000. At the time of the sale, the equipment had a remaining life of 5 years, straight-line. The parent still has the equipment at the end of 2017 (2 years later). On the consolidated financial statements for 2017, how is the equipment reported? (Points : 4)

Book value $320,000, depreciation expense $80,000

Book value $400,000, depreciation expense $100,000

Book value $200,000, depreciation expense $100,000

Book value $240,000, depreciation expense $80,000