1) On January 1, 2005 Able Company purchased all of the stock of Baker Company. On January 1, 2010, Able

purchased a piece of equipment for $50,000. This equipment is expected to last 8 years with a 2000 salvage.

On January 1, 2011 Able sold the equipment to Baker for $50,000. Baker believes the asset has 7 years of life remaining and a $1,000 salvage.

On January 1, 2013 Baker sold the equipment to Cat Company for $30,000.

Make all the necessary worksheet entries for 2010; 2011, 2012 and 2013 connected with this equipment