Padre holds $100$ percent of the outstanding shares of Sonora. On January $1,2022,$ Padre transferred equipment to Sonora for

$$114,000.$ The equipment had cost $$148,000$ originally but had a $$58,000$ book value and five$-$year remalning life at the date of

transfer. Depreclation expense is computed according to the straight$-$IIne method with no salvage value.

Consolidated financial statements for $2024$ currently are belng prepared.

Required:

What worksheet entrles are needed in connection with the consolidation of this asset? Assume that the parent applies the partlal

equity method.

Note: If no entry Is required for a transaction$/$event$,$ select $"$No journal entry requlred" In the first account fleld.

Consolidation

Worksheet Entries

$1$

$2$

Prepare Entry $*$TA

Note: Enter debits before credits.