On January 1, Year 1, Spike Ltd. purchased land from outsiders for $100,000. On December 31, Year 1, Pike Co. acquired all of the common shares of Spike. The fair value of Spike€™s land on this date was $115,000.
On December 31, Year 2, Spike sold its land to Pike for $128,000. On December 31,
Year 3, Pike sold the land to an arm€™s-length party for $140,000.
Both companies use the cost model for valuing their land and pay income tax at the rate of 40%. Assume that any gain on sale of land is fully taxable. The only land owned by these two companies is the land purchased by Spike in Year 1.
Required:
Determine the account balances for land, gain on sale of land, and income tax on gain for Years 1, 2, and 3 for three sets of financial statements (i.e., separate-entity statements for Pike and Spike and consolidated statements) by completing the following table:

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Pike Spike Consolidated December 31, Year 1 Land Gain on sale Income tax on gain December 31, Year 2 Land Gain on sale Income tax on gain December 31, Year 3 Land Gain on sale Income tax on gain