On January 1, 2012, Smeder Company, an 80% owned subsidiary of Collins, Inc. transferred equipment with a 10-year life (six of which remain with no salvage value) to Collins in exchange for $94,000 cash. At the date of transfer, Smeder's records carried the equipment at a historical cost of $140,000 less accumulated depreciation of $68,000. Straight-line depreciation is used. Smeder reported net income of $28,000 for 2012 and 2013, respectively.

Prepare the consolidation entries related to the equipment for year 2012 and year 2013