Pea Company purchased 70 percent of Split Companys stock approximately 20 years ago. On December 31, 20X8, Pea purchased a building from Split for $300,000. Split had purchased the building on January 1, 20X1, at a cost of $400,000 and used straight-line depreciation on an expected life of 20 years. The assets total estimated economic life is unchanged as a result of the intercompany sale.

1. Record the entry to eliminate the gain on the equipment and to correct the asset's basis.
2. Record the entry to adjust Accumulated Depreciation.