E$7-3$ Consolidation Entries for Land Transfer

Paragraph Corporation purchased land on January $1,20$X$1,$ for $$20,000.$ On June $10,20$X$4,$ it sold the land to its subsidiary, Sentence Corporation, for $$30,000.$ Paragraph owns $60$ percent of Sentence's voting shares.

Required

a$.$ Give the worksheet consolidation entries needed to remove the effects of the intercompany sale of land in preparing the consolidated financial statements for $20$X$4$ and $20$X$5.$

b$.$ Give the worksheet consolidation entries needed on December $31,20x4$ and $20x5,$ if Sentence had initially purchased the land for $$20,000$ and then sold it to Paragraph on June $10,20x4,$ for $$30,000.$mk