On January 1, Year 3, Peterson sold equipment to Silver for $120,000. The equipment was originally purchased on January 1, Year 1, for $100,000. Peterson was depreciating the equipment over 10 years using straight-line depreciation. There was no salvage value. Silver decides to depreciate the equipment over eight years, also using straight-line depreciation with no salvage value. Assume all other appropriate year-end and income tax journal entrieshave been made