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

Accum. Depreciation 100,000 $ 225,000

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.