Sparkle Corporation holds 70 percent ownership of Playtime Enterprises. On December 31, 20X6, Playtime paid Sparkle \(\$ 40,000\) for a truck that had been purchased by Sparkle for \(\$ 45,000\) on January 1, 20X2. The truck was considered to have a 15-year life from January 1, 20X2, and no residual value. Both companies depreciate equipment using the straight-line method.

\section*{Required}

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

b. Give the workpaper eliminating entry or entries needed on December \(31,20 \times 7\), to remove the effects of the intercompany sale.