Frazer Corporation purchased 60 percent of the voting common stock of Minnow Corporation on January 1, 20X1, at underlying book value. On December 31, 20X5, Frazer received \(\$ 210,000\) from Minnow for a truck Frazer purchased on January 1, 20X2, for \(\$ 300,000\). The truck is expected to have a useful life of 10 years and no salvage value. Both companies depreciate trucks on a straightline basis.

Required

a. Give the workpaper eliminating entry or entries needed at December \(31,20 \times 5\), to remove the effects of the intercompany sale.

b. Give the workpaper eliminating entry or entries needed at December 31, 20X6, to remove the effects of the intercompany sale.