On January 1, 2011, Musial Corp. sold equipment to Martin Inc. (a wholly-owned subsidiary) for $110,000 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.

Provide the consolidation journal entries on the worksheet at the end of 2011.

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