Exercise 7-4 Procter Company owns 90% of the outstanding stock of Silex Company. On January 1, 2014, Silex Company sold land to Procter Company for $374,200. Silex had originally purchased the land on June 30, 2010, for $215,800. Procter Company plans to construct a building on the land bought from Silex in which it will house new production machinery. The estimated useful life of the building and the new machinery is 15 years. (a) Your answer is correct. Prepare the entries on the books of Procter related to the intercompany sale of land for the years ended December 31, 2014, and December 31, 2015. (If no entry is required, select "No Entry" for the account titles and enter o for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit 2014 Tand 374,200 Cash 374,200 2015 No Entry No Entry (b) Prepare in general journal form the workpaper entries necessary because of the intercompany sale of land in: (If no entry is required, select "No Entry" for the account titles and enter o for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually.) (1) The consolidated financial statements workpaper for the year ended December 31, 2014. Date Account Titles and Explanation Debit Credit 2014 Land Cash (2) The consolidated financial statements workpaper for the year ended December 31, 2015. Debit Credit Date Account Titles and Explanation 2015 Cost Method Partial Equity Method Complete Equity Method