Patty Corporation owned equipment with an original cost of $630,000. On January 1, 2018, Patty sold the equipment to Sally Company (a 75%-owned subsidiary) for a price of $498,400. At the time of the intercompany sale, the equipment had been depreciated for $154,000. The equipment has a remaining useful life of 7 years and is straight-line depreciated. On January 1, 2020, Sally sold the equipment to an outside company for $402,000.

(i) Prepare the working paper eliminating entry regarding the equipment for the year ended December 31, 2018.

(ii) Prepare the working paper eliminating entry I-1 regarding the equipment for the year ended December 31, 2019.

(iii) Prepare the working paper eliminating entry regarding the equipment for the year ended December 31, 2020.