Pillar Company owns $70$ percent of Salt Company's outstanding common stock. On December $31,20$X$8,$ Salt sold equipment to Pillar at a price in excess of Salt's carrying amount but less

than its original cost. On a consolidated balance sheet at December $31,20$X$8,$ the carrying amount of the equipment should be reported at:

Salt's original cost.

Pillar's original cost.

Pillar's original cost less $70$ percent of Salt's recorded gain.

Pillar's original cost less Salt's recorded gain.