On 1 January 2004, P Co. acquired a 30% ownership interest in Z Co. At that date, the share capital of Z Co. was $200,000 while its retained earnings balance was $400,000. Z Co. had an unrecognized intangible asset with a reliable fair value of $240,000. The intangible asset had a useful life of five years from the date of acquisition.

On 1 January 2005, Z Co. transferred machinery to P Co. at an invoiced price of $296,000. The original cost of the machinery was $360,000. The machinery had an original useful life of five years with no residual value. As at 1 January 2005, the remaining useful life of the machinery was four years with no change to its original estimated useful life.

Profit= $500,000 Change in Retained Earnings= $160,000 Dividends= $60,000

Please prepare the equity accounting entries for 2005.