Parent acquired subsidiary of January 1,2014 at a price of $150,000 In excess of book value. Of that excess $100,000 was allocated to an unrecorded customer list with a 10 year life with the remainder to Goodwill. On January 2017, subsidiary sold equipment to parent for $60,000. The equipment had a cost of $70,000 and accumulated depreciation of $28,000. The remaining life of the equipment was estimated at six years. Financial statements for the two companies for the year ended December 31, 2018 are represented below.

2. Parent 5100,000 was aoguired Subsidary on Janury 1, 2014 ata price $150,000 n exces of book value Of that excess On January aocated to an unrecorded Customer List with a 10-year life, with the remainder to Goodwill 2017, Subsidiary sold equipment to Parent for $60,000. The equipment had a cost of $70.000 and accumulated of 328,000 The remaining life of the equipment was estimated at 6 years Financial statements for the two companies for the year ended December 31 , 2018 are presented below Parent $5,000,000 Subsidiary Sales revenue s 1,000,000 Cost of goods sold (609.0) 400,000 (260,000) Gross profit 1,400,000 (750,000) Operating expensers Equity income Net Income Retained Earmings, 1/1/18 $2,922,150 783,000 225,000 140,000 Net income Retained Earnings, 12/31/18 Cash and receivables $1,404,650 1,300,000 712,000 s 752,000 550,000 Equity investment Property, plant & equipment (Net) Total Assets 1030.000 $8.446.650 $2.332.000 Accounts payable Accrued liabilities Notes payable Common stock Additional paid-in capital Retained Earnings, 12/31/18 676,000 716,000 1,250,000 211,500 2,030,000 $ 178,000 230,000 1,300,000 124,000 155,000 Total Liabilities and Equities $8.446.650 $2.332.000 Required a. Prepare the journal entries on the books of Parent and Subsidiary to record the equipment sale