Note: This practice assignment accounts for 3 extra points. No point will be given when (1) it is overdue. (2) kis only partially completed. (3) no work is provided, and/or (4) most answer work is incorrect. Points will be deducted ir part of the answer/work provided is incorrect. On January 1, Year 1, Silver Oak Company, an 80% owned subsidiary of Clearwood, Inc. transferred equipment with a 5-year remaining life to Clearwood in exchange for $84,000 cash. At the date of transfer, Silver Oak's records carried the equipment at a cost of $120,000 less accumulated depreciation of $48,000. Straight-line depreciation is used with no salvage value. Silver Oak reported net income of $28,000 and $32,000 for Year 1 and Year 2, respectively. The annual excess amortization is $1,500. Requirements: (a) Prepare the consolidation entry "TA in Year 2. Account nt Title Debit Credit (b) Prepare the consolidation entry ED in Year 2. Account Title Debit Credit (c) Compute the Clearwood's share in Silver Oak's net income for Year 1 and Year 2. Answer: Year 1: Year 2 (d) Redo (c) but assume that the sale was downstream instead of upstream. Answer: Year 1: Year 2 Note: This practice assignment accounts for 3 extra points. No point will be given when (1) it is overdue. (2) kis only partially completed. (3) no work is provided, and/or (4) most answer work is incorrect. Points will be deducted ir part of the answer/work provided is incorrect. On January 1, Year 1, Silver Oak Company, an 80% owned subsidiary of Clearwood, Inc. transferred equipment with a 5-year remaining life to Clearwood in exchange for $84,000 cash. At the date of transfer, Silver Oak's records carried the equipment at a cost of $120,000 less accumulated depreciation of $48,000. Straight-line depreciation is used with no salvage value. Silver Oak reported net income of $28,000 and $32,000 for Year 1 and Year 2, respectively. The annual excess amortization is $1,500. Requirements: (a) Prepare the consolidation entry "TA in Year 2. Account nt Title Debit Credit (b) Prepare the consolidation entry ED in Year 2. Account Title Debit Credit (c) Compute the Clearwood's share in Silver Oak's net income for Year 1 and Year 2. Answer: Year 1: Year 2 (d) Redo (c) but assume that the sale was downstream instead of upstream. Answer: Year 1: Year 2