Pluto Corporation owns 70 percent of Saturn Company's stock. On July 1, 20X4, Pluto sold a piece of equipment to Saturn for $56,350. Pluto 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. Based on the information provided, in the preparation of the 20X5 consolidated income statement, depreciation expense will be

		debited for $350 in the consolidation entries.
		debited for $700 in the consolidation entries.
		credited for $350 in the consolidation entries.
		credited for $700 in the consolidation entries.