On January 1, 20X7, Pillow Corporation sold to Sheet Corporation equipment it had purchased for $240,000 and used for eight years. Pillow recorded a gain of $21,700 on the sale. The equipment has a total useful life of 15 years and is depreciated on a straight-line basis. Pillow holds 60 percent of Sheet's voting common shares. Required: a. Prepare the journal entry made by Pillow on January 1, 20X7, to record the sale of equipment. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet > A Record the gain on equipment. Note: Enter debits before credits. Event 1 General Journal Debit Credit Record entry Clear entry View general journal > b. Prepare the journal entries recorded by Sheet during 20X7 to record the purchase of equipment and year-end depreciation expense. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet A B Record the purchase of equipment. Note: Enter debits before credits. Event 1 General Journal Debit Credit Record entry Clear entry View general journal > 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.) view transaction list Consolidation Worksheet Entries A B Record the entry to eliminate the gain on the equipment and to correct the asset's basis. Note: Enter debits before credits. Event 1 Accounts Debit Credit Record entry Clear entry view consolidation entries > d. Prepare the consolidation entry or entries related to the equipment required at January 1, 20X8, to prepare a consolidated balance sheet only. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) view transaction list Consolidation Worksheet Entries A Record the entry to eliminate the gain on the equipment and to correct the asset's basis. Note: Enter debits before credits. Event 1 Accounts Debit Credit Record entry Clear entry view consolidation entries