4. Stylus Corporation is a 70%-owned subsidiary of Pen Inc. On January 2, 2018, Stylus agreed to lease $400,000 of construction equipment from Phan for $4,000 a month on an operating lease. The equipment has a 10-year life and is being depreciated using the straight-line method. Required: Prepare the eliminations and adjustments required by the intercompany lease on the partial worksheet for December 31, 2020. Key and explain all eliminations and adjustments. Phan Inc. and Smart Corp. Consolidated Partial Worksheet For the Year Ended December 31, 2020 Eliminations and Trial Balance Adjustments Debit Pen Stylus | Debit Credit Equipment 987,000 40.000 Accumulated Depreciation -Equipment (212,500)|(8,000) Equipment Under Operating Lease 400,000 Accumulated Depreciation - Equipment Under Operating Lease (120,000) Rent Receivable 4,000 Rent Payable (4.000) Rental Income (62,000) Rent Expense 48,000 Depreciation Expense 138,700 2,000 4 pts