On January 2, 20X1, Entity X purchases 75% of the common stock of Entity Y for P250,000. Entity Y has P200,000 and P50,000 common stock and retained earnings, respectively. On December 31, 20X1, Entity X sold equipment to Entity Y for P80,000. The equipment generally costs Entity X P120,000 when purchased four

(4) years ago. Moreover, it is depreciated over its life of 10 years using the straight-line method with no residual value. The companies have the following data for years 20X1 and 20X2:

Entity X

Items

20X1 20X2

Dividends Paid P38,000 P60,000

Comprehensive Income

from Own Operation 147,000 159,000

Entity Y

Items

20X1 20X2

Dividends Paid to X P22,500 P31,500

Comprehensive Income

from Own Operation 50,000 74,000

Please Need Journal Entry and Table

1.Prepare the necessary journal and elimination entries that should be made in 20X1 and 20X2 about the sale of equipment. Follow the steps in the handout.

2.Allocate the consolidated comprehensive income for each year.