Parent Co. holds 70% interest in Son Inc. On January 1, 2019, Parent purchased a building with a 10 year life for $450,000. Parent depreciated the building on the straight-line basis assuming no salvage value. On January 1, 2021, Parent sold this building to Son for $409,600. At that time, the building had a remaining life of eight years with no salvage value.

Prepare the worksheet entries related to this transfer for the December 31, 2021 and the December 31, 2022, consolidation of these two companies to eliminate the impact of the intra-entity transfer?

Worksheet entries for 2021

Worksheet entries for 2022