Paste Corporation owns 70 percent of Stick Corporation’s voting common stock. On March 12, 20X2, Stick sold land it had purchased for $140,000 to Paste for $185,000. Paste plans to build a new warehouse on the property in 20X3.

Required

a. Give the worksheet consolidation entries to remove the effects of the intercompany sale of land in preparing the consolidated financial statements at December 31, 20X2 and 20X3.

b. Give the worksheet consolidation entries needed at December 31, 20X3 and 20X4, if Paste had initially purchased the land for $150,000 and sold it to Stick on March 12, 20X2, for $180,000.