On January 1, 20X7, Pillow Corporation sold to Sheet Corporation equipment it had purchased for $150,000 and used for eight years. Pillow recorded a gain of $18,900 on the sale. The equipment has a total useful life of 15 years and is depreciated on a straight-line basis. Pillow holds 75 percent of Sheets voting common shares.

c. Prepare the consolidation entry or entries related to the intercompany sale of equipment needed at December 31, 20X7, to prepare a full set of consolidated financial statements. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)