I I ONLY NEED PART D AND E

Question 1 Partially correct Mark 1.96 out of 2.50 Flag question Edit question Preparing the [l] consolidation entries for sale of depreciable assets-Cost method Assume on January 1, 2016, a parent sells to its wholly owned subsidiary, for a sale price of $100,000, equipment that originally cost $120,000. The parent originally purchased the equipment on January 1, 2012, and depreciated the equipment assuming a 12-year useful life (straight-line with no salvage value). The subsidiary has adopted the parent's depreciation policy and depreciates the equipment over the remaining useful life of 8 years. The parent uses the cost method of pre-consolidation investment bookkeeping. a. Compute the pre-consolidation annual depreciation expense for the subsidiary (post-intercompany sale) and the parent (pre-intercompany sale). Parent depreciation expense 10,000 Subsidiary depreciation expense 12,500 b. Compute the pre-consolidation Gain on Sale recognized by the parent during 2016. $ 20,000 0 c. Prepare the required [l] consolidation entry in 2016 (assume a full year of depreciation). Consolidation Journal Description Debit Credit [lgain] Gain on sale of equipment 20,000 Equipment 20,000 Accumulated depreciation 0 40,000 [ldep] Accumulated depreciation 2,500 0 Depreciation expense 0 2,500 0 Text d. With respect to the deferred gain on intercompany sale, what effect (i.e., amount) will it have on the [AD]] entry necessary to prepare the consolidated financial statements for the year ended December 31, 2019? In addition, specify the account that will be debited and the account that will be credited in the [AD]] entry for the effect of the deferred gain on intercompany sale. Prepare the [AD]] consolidation entry for December 31, 2019 to show the effect of the deferred gain on the intercompany sale. Consolidation Journal Description Debit Credit [AD]] Equity investment x BOY Retained earnings-Parent- 0 0 x e. Prepare the required [l] consolidation entry in 2019 (assuming the subsidiary is still holding the equipment). Consolidation Journal Description Debit Credit [lgain] Equity investment 0 Equipment 0 Depreciation expense 0 0X [ldep] Accumulated depreciation 2,500 0 Depreciation expense 0 2,500 X