A- Intel Inc. is a 70% owned subsidairy of Dell corporation, which was acquired at book value several years ago. Separate compay income statements for 2015 is shown below:

	Dell	Intel
Sales	15,000,000	6,400,000
Gain on sale of machine	-	400,000
Total Income	15,000,000	6,800,000
Cost of goods sold	(10,000,000)	(4,000,000)
Operating expenses	(2,000,000)	(1,300,000)
Total expense	(12,000,000)	(5,300,000)
Net income	3,000,000	1,500,000

On January 1, 2015 Intel sold a machine to Dell for $900,000 , the cost of machine was $700,000 and accumulated depreciation $200,000 and remaining useful life 10 years. (22 Marks)

Required:

1. Record journal entries prepared by the parent during 2015 ( 6 Marks)
2. Prepare a a working paper for consolidated income statement for 2015 and the elimination entires required (16 Marks)