1)In January 2013, S Company, an 80% owned subsidiary of P Company, sold equipment to P Company for $1,980,000. S Companys original cost for this equipment was $2,000,000 and had accumulated depreciation of $200,000. P Company continued to depreciate the equipment over its 9 year remaining life using the straight-line method. This equipment was sold to a third party on January 1, 2017 for $1,440,000. What amount of gain should P Company record on its books in 2017?

a) $60,000.

b) $120,000.

c) $240,000.

d) $360,000.

2)On January 1, 2016 S Corporation sold equipment that cost $120,000 and had a book value of $48,000 to P Corporation for $60,000. P Corporation owns 100% of S Corporation and the equipment has a 4-year remaining life. What is the effect of the sale on P Corporations Equity from Subsidiary Income account for 2017?

a) no effect

b) increase of $12,000.

c) decrease of $12,000.

d) increase of $3,000.

3) P Corporation acquired an 80% interest in S Corporation two years ago at an implied value equal to the book value of S. On January 2, 2017, S sold equipment with a five-year remaining life to P for a gain of $120,000. S reports net income of $600,000 for 2017 and pays dividends of $200,000. Ps Equity from Subsidiary Income for 2017 is:

a) $480,000.

b) $384,000.

c) $403,200.

d) $576,000

Please show me all the work....so I can learn from instead of just posting answers...thanks