Indigo Inc. is a large multinational corporation with a number of subsidiaries located in countries all over the world. One of Indigo's subsidiaries, Sweet Ltd., sold a piece of manufacturing...

Extracted text: Indigo Inc. is a large multinational corporation with a number of subsidiaries located in countries all over the world. One of Indigo's subsidiaries, Sweet Ltd., sold a piece of manufacturing equipment to another one of Indigo's subsidiaries, Pharoah Inc. Indigo owned 80% of Sweet and 65% of Pharoah. The equipment had been on Sweet's books at a carrying value of $128,000, and had a fair market value of $153,850. Pharoah paid $132,800 for the equipment. Both Sweet and Pharoah were in the business of selling manufactured products to their customers; the sale of the equipment was considered to be outside the normal course of both businesses. Identify what value should be used by both Sweet and Pharoah to record the sale/purchase of the equipment. Sweet to record the sale/purchase of the equipment at $4 Pharoah to record the sale/purchase of the equipment at 2$