(2) At the beginning of 2019, the subsidiary sold equipment with a 5-year remaining life and a net book value of $50,000(book value; $70,000 and accumulated depreciation; $20,000) to its parent for $80,000. The parent still holds the equipment at the end of 2020.

Required

1. Prepare the eliminating entries (I) for the 2020 consolidation working paper for the above intercompany transaction.(6 pts)

2. Now assume that the equipment was sold to an outside company at the end of 2020. Repeat the requirements of part a.(3 pts)

3. Now assume that the equipment was sold to an outside company at the beginning of 2020. Repeat the requirements of part a.(3 pts)