Neptune Corporation owns 70 percent of Pluto Company's stock. On July 1, 20X4, Neptune sold a piece of equipment to Pluto for $56,350. Neptune had purchased this equipment on January 1, 20X1, for $63,000. The equipment's original 15-year estimated total economic life remains unchanged. Both companies use straight-line depreciation. The equipment's residual value is considered negligible.

79.

Required information

Based on the information provided, in the preparation of the 20X4 consolidated financial statements, equipment will be ______ in the consolidation entries.

debited for $6,650

debited for $56,350

debited for $63,000

credited for $63,000