Direction: Analyze the case and give what is asked.

On January 2, 20X1, Entity X purchases 75% of the common stock of Entity Y for P250,000. Entity Y hasP200,000 and P50,000 common stock and retained earnings, respectively. On December 31, 20X1, PC soldequipment to SC for P80,000. The equipment generally cost PC P120,000 when purchased four (4) years ago.

Moreover, it is depreciated over its life of 10 years using the straight-line method with no residual value. Thecompanies have the following data for years 20X1 and 20X2:

Direction: Analyze the case and give what is asked. On January 2, 20X1, Entity X purchases 75% of the common stock of Entity Y for P250,000. Entity Y has P200,000 and P50,000 common stock and retained earnings, respectively. On December 31, 20X1, PC sold equipment to SC for P80,000. The equipment generally cost PC P120,000 when purchased four (4) years ago. Moreover, it is depreciated over its life of 10 years using the straight-line method with no residual value. The companies have the following data for years 20X1 and 20X2: Entity X Items 20X1 20X2 Dividends Paid P38,000 P60,000 Comprehensive Income from Own Operation 147,000 159,000 Entity Y Items 20X1 20X2 Dividends Paid to X P22,500 P31,500 Comprehensive Income from Own Operation 50,000 74,000 Required: 1. Prepare the necessary journal and elimination entries that should be made in 20X1 and 20X2 about the sale of equipment. Follow the steps in the handout. 2. Allocate the consolidated comprehensive income for each year