On January $1,$ Year $2,$ Pipe Corporation acquired equipment for $$14,500$ from its wholly$-$owned subsidiary, Sink

Company. The equipment was carried at $$9,000$ in Sink$$s accounting records and had an economic life of $10$ years on

January $1,$ Year $2.$ Pipe uses the straight$-$line depreciation method.

Instructions:

Prepare journal entries for all intercompany transactions and a working paper elimination $($in journal entry format$)$ for

parent and subsidiary, as well as other related calculations and journal entries, for end of Years $2$ and $3.$