Peak Corporation owns 75 percent of Summit Company's voting shares, acquired on March 21, 20X5, at book value. At that date, the fair value of the noncontrolling interest was equal to 25 percent of the book value of Summit Company.

	Peak Corporation	Summit Company
Cash and Receivables	$ 70,000	$ 10,000
Inventory	46,250	20,000
Land	140,000	45,000
Buildings and Equipment	250,000	150,000
Investment in Summit Company Stock	93,750
Debits	$ 600,000	$ 225,000
Accumulated Depreciation	$ 100,000	$ 42,500
Accounts Payable	30,000	12,500
Notes Payable	70,000	45,000
Common Stock	100,000	100,000
Retained Earnings	300,000	25,000
Credits	$ 600,000	$ 225,000

On January 1, 20X4, Peak paid $150,000 for equipment with a 10-year expected total economic life. The equipment was depreciated on a straight-line basis with no residual value. Summit purchased the equipment from Peak on December 31, 20X6, for $140,000. Summit sold land it had purchased for $75,000 on February 18, 20X4, to Peak for $60,000 on October 10, 20X7.

Required:

Prepare the consolidation entries for 20X8 related to the sale of depreciable assets and land if Peak uses the fully adjusted equity method to account for its investment in Summit.