On January 1, 2010, Company A sold equipment to Company B (a wholly-owned subsidiary) for $168,000 in cash. The equipment originally cost $140,000 but had a book value of only $98,000 when transferred. On that date, the equipment had a five-year remaining life. Depreciation expense was calculated using the straight-line method. Company A earned $208,000 in net income in 2010 (not including any investment income) while Company B reported $166,000.

Prepare the consolidation entries associated with this transaction for 2010 and 2011