Pep Ltd. (Pep) owns 70% of Step Corp. (Step). On January 1, 2023, Pep sold equipment to its subsidiary company, Step for $50,000. The equipment had an original cost of $80,000. The net book value of the equipment on January 1 , 2023 was $40,000 and had a remaining useful life of 5 years. Both companies have a tax rate of 30% and a December 31 year end. Pep uses the equity method to account for its investment in Step. Which of the following is the correct carrying amount of the equipment on the consolidated balance sheet for December 31, 2023? a. $40,000 b. $32,000 c. $48,000 d. $50,000