On January $1,20$X$7,$ Pillow Corporation sold to Sheet Corporation equipment it had purchased for $$210,000$ and used for eight years. Pillow recorded a gain of $$19,600$ on the sale. The equipment has a total useful life of $15$ years and is depreciated on a straight$-$line basis. Pillow holds $65$ percent of Sheet$$s voting common shares.

Required:

Prepare the journal entry made by Pillow on January $1,20$X$7,$ to record the sale of equipment.

Prepare the journal entries recorded by Sheet during $20$X$7$ to record the purchase of equipment and year$-$end depreciation expense.

Prepare the consolidation entry or entries related to the intercompany sale of On January $1,20$X$7,$ Pillow Corporation sold to Sheet Corporation equipment it had purchased for $$210,000$ and used for eight years.

Pillow recorded a gain of $$19,600$ on the sale. The equipment has a total useful life of $15$ years and is depreciated on a straight$-$line

basis. Pillow holds $65$ percent of Sheet's voting common shares.

Requlred:

o$.$ Prepare the journal entry made by Pillow on January $1,207,$ to record the sale of equipment.

Note: If no entry is requlred for a transactlon$/$event$,$ select $"$No journal entry requlred" In the flrst account fleld.

Answer is not complete.

b$.$ Prepare the journal entries recorded by Sheet during $207$ to record the purchase of equipment and year$-$end depreciation

expense.

Note: If no entry is requlred for a transactlon$/$event$,$ select $"$No journal entry requlred" In the flirst account fleld.

c$.$ Prepare the consolidation entry or entries related to the intercompany sale of equipment needed at December $31,207,$ to prepare

a full set of consolidated financial statements.

Note: If no entry is requlred for a transactlon$/$event$,$ select $"$No journal entry requlred" In the flirst account fleld.equipment needed at December $31,20$X$7,$ to prepare a full set of consolidated financial statements.

Prepare the consolidation entry or entries related to the equipment required at January $1,20$X$8,$ to prepare a consolidated balance sheet only.