Assume on January 1, 2017, a wholly owned subsidiary sells to its parent, for a sale price of $132,000, equipment that originally cost $180,000. The subsidiary originally purchased the equipment on January 1, 2013, and depreciated the equipment assuming a 12-year useful life (straight-line with no salvage value). The parent has adopted the subsidiary’s depreciation policy and depreciates the equipment over the remaining useful life of 8 years. The parent uses the equity method to account for its Equity Investment.

a. Compute the annual pre-consolidation depreciation expense for the subsidiary (pre-intercompany sale) and the parent (post-intercompany sale).

Annual depreciation expense-subsidiary	$150000
Annual depreciation expense-parent	$16500

b. Compute the pre-consolidation Gain on Sale recognized by the subsidiary during 2017.

$12,000

c. Prepare the required [I] consolidation journal entry in 2017 (assume a full year of depreciation).

Consolidation Worksheet
Description		Debit	Credit
[Igain]	Gain on sale of equipment	$12,000
	Equipment	$48,000
	Accumulated depreciation-Equipment		$60,000
[Idep]	Accumulated depreciation-Equipment	$1,500
	Depreciation Expense		$1,500

d. Now assume that you are preparing the year-end consolidation journal entries for the year ending December 31, 2019. Prepare the required [I] consolidation journal entries during the holding period.

Consolidation Worksheet
Description		Debit	Credit
[Igain]	Investment in subsidiary	$12,000 (I got this one wrong)
	Equipment	$48,000
	Accumulated Depreciation - Equipment		$60,000 ( I got this one wrong)
[Idep]	Accumulated Depreciation - Equipment	$1,500
	Depreciation Expense		$1,500

How I can calculate for the number I got wrong (which I noted above) of "Investment in subsidiary" account and "Accumulated Depreciation - Equipment"?