Exercise $-$ Part $1(30$min

Wavemasters Inc., owns an $80\%$ interest in Sayner Development

Company. In a prior period, Sayner Development purchased a parcel

of land for $$50,000.$

During $20$x$1,$ Sayner Development constructed a building on the

land at a cost of $$500,000.$ The land and building were sold to

Wavemasters at the end of $201$ for $$750,000,$ of which $$100,000$

was for the land.

It is estimated that the building has a $20-$year life with no salvage

value and the $\frac{S}{L}$ method is used for depreciation.

Prepare all worksheet eliminations that would be made on the

$201$ consolidated worksheet as a result of the real estate sale.

Prepare all worksheet eliminations that would be made on the

$202$ consolidated worksheet as a result of the $201$ real estate sale.

Prepare all worksheet eliminations that would be made on the

$203$ consolidated worksheet if the land and building were sold for

$$125,000$ and $$720,000,$ respectively, to an outside party at the end

of $203.$