On January 1, 20X7, Pillow Corporation sold to Sheet Corporation equipment it had purchased for $255,000 and used for elght years. Pillow recorded a galn of $16,100 on the sale. The equipment has a total useful life of 15 years and is depreclated on a stralght-line basis. Plllow 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. Note: If no entry is required for a transaction/event, select "No journal entry required" In the flist account fleld. Journal entry worksheet Record the gain on equipment. Note: Enter debits before credits. b. Prepare the journal entrles recorded by Sheet during 207 to record the purchase of equipment and year-end depreclation expense. Note: If no entry ls requlred for a transaction/event, select "No journal entry requlred" In the flist account fleld. Journal entry worksheet Note: Enter debits before credits. c. Prepare the consolidation entry or entrles related to the Intercompany sale of equipment needed at December 31,207, to prepare a full set of consolidated financlal statements. Note: If no entry is required for a transaction/event, select "No journal entry requlred" In the first account fleld. Consolidation Worksheet Entries Record the entry to eliminate the gain on the equipment and to correct the asset's basis. Note: Enter debits before credits. d. Prepare the consolidation entry or entrles related to the equipment requlred at January 1, 20X8, to prepare a consolidated balance sheet only. Note: If no entry is required for a transaction/event, select "No journal entry required" In the first account fleld. Consolidation Worksheet Entries Record the entry to eliminate the gain on the equipment and to correct the asset's basis. Note: Enter debits before credits