Park Company acquires an 85% interest in Sunland Company on January 2, 2025. The resulting difference between book value and the value implied by the purchase price in the amount of $120,000 is entirely attributable to equipment with an original life of 15 years and a remaining useful life, on January 2, 2025, of 10 years.

Required:
Prepare the December 31 consolidated financial statements workpaper entries for 2025 and 2026 to allocate and depreciate the difference between book value and the value implied by the purchase price, recording accumulated depreciation as a separate balance.