E7-17 Consolidation Entries Following Intercompany Sale at a Loss LO 7-6 Pocket Corporation holds 70 percent of Strap Company's voting common stock. On January 1, 20X2, Strap paid $300,000 to acquire a building with a 15-year expected economic life. Strap uses straight-line depreciation for all depreciable assets. On December 31, 20X7, Pocket purchased the building from Strap for $144,000. Pocket reported income, excluding investment income from Strap, of $125,000 and $150,000 for 20X7 and 2088, respectively. Strap reported net income of $15,000 and $40,000 for 20x7 and 20X8, respectively Required a. Give the appropriate consolidation entry or entries needed to eliminate the effects of the intercompany sale of the building in preparing consolidated financial statements for 20x7 b. Compute the amount to be reported as consolidated net income for 20x7 and the income to be allocated to the controlling interest C. Give the appropriate consolidation outry or entries needed to eliminate the effects of the intercompany sale of the building in preparing consolidated financial statements for 20x8 d. Compute consolidated net income and the amount of income ansigned to the controlling shareholders in the consolidated income statement for 20x8 ? W N a 201 PM 7/11/21 O hp hp backspace LO 7-6 Pocket Corporation holds 70 percent of Stap Compass Cock Olary 1, 2002, Stepad 300,000 same building with a 15-year expected come life Strap deprechos for all depreciable On December 31, 2037. Pocket pached the building from Strap for $344.000. Podle reported income, excluding comm Swap of $135.000 150.000 for 2037 2038, respectral Strap reported income of $15,000 and 540,000 for 20x7 and 2018 respecte Required Q. Give the appropriate consolidation entry or strenind to eliminate the effects of the intercompany sale of the building in preparing consolidated facial statements for 20x7 b. Compute the amount to be reported a consolidated out income the 2017 and the income to be allocated to the controlling interest c. Gre the propriate consolidation entry or unies needed to eliminate the effects of the intercompany sale of be building is preparing consolidated facial statements for 20X6 d. Compute consolidated wat income and the amount of income signed to the cooling shareholders in the consolidated income statement for 2008. E7-18 Multiple Transfers of Asset a ? hp