Victory Co$.$ owned $90\%$ of the voting common stock of Walker Co$.$ On January $3,20x2,$ Victory sold equipment to Walker for $$160,000.$ The equipment cost Victory $$180,000.$ At

the time of the transfer, the balance in accumulated depreciation was $$36,000.$ Victory estimated a zero salvage value and depreciated the equipment using the straight$-$line

method over $10$ years, a policy that Walker continued.

In Victory's December $31,20$X$2$ consolidated balance sheet, this equipment should be included in fixed$-$asset cost and accumulated depreciation as

Cost: $$180,000$; Accumulated Depreciation: $$56,000$

Cost: $$160,000$; Accumulated Depreciation: $$20,000$

Cost: $$144,000$; Accumulated Depreciation: $$18,000$

Cost: $$180,000$; Accumulated Depreciation: $$54,000$