On January 1, 2014, Pharmasi Company purchased equipment from its (80% owned) subsidiary for $ 2,400,000. At the date of sale, the carrying value of the equipment in the books of the subsidiary is $ 1,800,000. The equipment had a remaining useful life of six years in January 2014. On January 1, 2015, Pharmasi Company sold the equipment to an outside party for $ 2,200,000.

A. What and how journal entries are required in 2014 and 2015 in the Pharmasi Company books for the purchase and sale of equipment?

B. How to determine the consolidated profit or loss on the sale of equipment and make the necessary entries on the December 31, 2015 consolidated statement worksheet to record this gain or loss correctly.