2 P Company owns 60% of the outstanding common stock of S Company. On January 1, 2016, P Company sold equipment to S Company for $300,000. The equipment cost P Company $1,000,000 on January 1st, 2010. The useful life at the time of sale was determined to be 10 years. After the sale from P to S, the management of S Company estimated that the equipment had a remaining useful life of 8 years. To solve: Prepare all journal entries for P and S (from initial purchase of equipment from 3rd purchase to sale between the related parties) on January 1, 2016. In addition, prepare the w/p entry to eliminate the intercompany sale parties, depreciation from initial of equipment as of January 1, 2016. Finally, prepare the adjustment to depreciation on Dec. 31, 2016. TTT Arial 3(12pt) TEE QIXY