Frazer Corporation purchased 60 percent of Minnow Corporations voting common stock on January 1, 20X1. On January 1, 20X5, Frazer received $252,000 from Minnow for a truck Frazer had purchased on January 1, 20X2, for $312,000. The truck is expected to have a 10-year useful life and no salvage value. Both companies depreciate trucks on a straight-line basis.

a.

Prepare the worksheet consolidation entry or entries needed at December 31, 20X5, to remove the effects of the intercompany sale

b.

Prepare the worksheet consolidation entry or entries needed at December 31, 20X6, to remove the effects of the intercompany sale.

I have the accounts correct, but am having trouble with the amounts. Here is what I have correct so far

A.

Truck	60000
Gain on Sale	33600
Accumulated Depreciation		93600
Accumulated Depreciation
Depreciation Expense

B.

Investment in Minnow
Truck	60000
Accumulated Depreciation
Accumulated Depreciation
Depreciation Expense