On January 1st the Eagle Company acquired all of the outstanding stock of the Bear Company at book value Eagle Company accounts for its investment in Bear Company using the initial value method and Bear does not pay any dividends On January 1st 2015 Eagle company purchased a building for $1,000,000. This building has a 20 year life and Eagle uses straight line depreciation with no salvage value. On January 1st 2019 Eagle sold the building to Bear Company for $990,000. Bear believes the building will last 16 years with no salvage value and Bear also uses straight line depreciation Bear gave Eagle a 1 year 12% note with principal and interest due January 1, 2020. On January 1st 2022 Bear sold the building to Unaffiliated Company for $700,000.

REQUIRED: A) DETERMINE EAGLE'S ANNUAL DEPRECIATION EXPENSE

B) MAKE THE JOURNAL ENTRY EAGLE MAKES WHEN IT SELLS THE BUILDING TO BEAR

C) MAKE THE JOURNAL ENTRY BEAR MAKES WHEN IT BUYS THE BUILDING

D) DETERMINE BEAR'S ANNUAL DEPRECIATION EXPENSE

E) MAKE THE WORKSHEET ENTRIES NEEDED IN 2019

F) IN 2019 EAGLE REPORTED UNCONSOLIDATED INCOME OF $500,000 AND BEAR REPORTED INCOME OF $80,000. WHAT IS CONSOLIDATED INCOME?

G) MAKE THE NECESSARY WORKSHEET ENTRIES NEEDED IN 2020

H) IN 2020 EAGLE REPORTED UNCONSOLIDATED INCOME OF $500,000 AND BEAR REPORTED INCOME OF $80,000. WHAT IS CONSOLIDATED INCOME?

I) MAKE THE JOURNAL ENTRY BEAR MAKES IN 2022 WHEN IT SELLS THE BUILDING

J) MAKE THE WORKSHEET ENTRY NEEDED IN 2022

K) IN 2022 EAGLE REPORTED UNCONSOLIDATED INCOME OF $500,000 AND BEAR REPORTED INCOME OF $80,000. WHAT IS CONSOLIDATED INCOME?