Klon corp. holds 60% ownership of Brant corp. Each year, Brant purchases large quantities of a gnarl root used in producing health drinks. Brant purchases $300,000 of roots in 2021 and sold $80,000 of these purchases to Klon for $120,000. By the end of 2021, Klon had resold all except $30,000 of its purchase from Brant. Klon generated $180,000 on the sale of roots to various health stores during the year. Instructions: Give journal entries recorded by Klon and Brant during 2021 relating to the initial purchase, intercorporate sale and resale of gnarl roots. Give the worksheet elimination entries needed as of December 31, 2021, to remove all effects of the intercompany profit transaction, in preparing consolidated financial statements.