Exercise 7-10 (Static) Sale of Equipment to Subsidiary in Current Period LO 7-5 On January 1, 20X7, Pillow Corporation sold to Sheet Corporation equipment it had purchased for $150,000 and used for eight years. Pillow recorded a gain of $14,000 on the sale. The equipment has a total useful life of 15 years and is depreciated on a straight-line basis. Pillow holds 70 percent of Sheet's voting common shares. Required: a. Prepare the journal entry made by Pillow on January 1, 20X7, to record the sale of equipment. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Answer is not complete. No Event A 1 Cash Accumulated depreciation Equipment Gain on sale of equipment General Journal Debit Credit