ABC Co., the subsidiary sells to its parent co. equipment that had cost $40,000 on Jan 1, 2021. The equipment had a selling price of $36,000 and accumulated depreciation at the time of sale was $14,000. Assume the subsidiary took $2,600 per year in depreciation. The parent estimates that the equipment has a remaining useful life of 10 years.

A. Prepare the I consolidation entries for 2021 related to the equipment sale.

B. Prepare the I consolidation entries for 2023 related to the equipment sale.