Padre holds 100 percent of the outstanding shares of Sonora. On January 1, 2011, Padre transferred equipment to Sonora for $86,000. The equipment had cost $134,000 originally but had a $44,000 book value and five-year remaining life at the date of transfer. Depreciation expense is computed according to the straight-line method with no salvage value.

Consolidated financial statements for 2013 currently are being prepared. What worksheet entries are needed in connection with the consolidation of this asset? Assume that the parent applies the partial equity method.