During 2015, Simons Corp. sold merchandise to Pine Corp. for $80,000. Assume Simons is an 80% owned subsidiary of Pine Corp. and that Simons maintains a 20% gross profit rate on all sales.

Further assume the following:

Pine still has $20,000 of the inventory purchases from Simons from 2014 in its beginning inventory.

Pine has $30,000 of the inventory purchases from Simons in its ending inventory for 2015

Pine billed Simons for $5,000 for computer tech services offered to Simons in 2015. The balance remained unpaid at the end of 2015.

1.) prepare the elimination entries that would appear on the consolidation worksheet related to the inter-company activities for 2015.