Pepper Company acquired 75 percent of Salt Company's stock at underlying book value on January 1, 20X8. At that date, the fair value of the noncontrolling interest was equal to 25 percent of the book value of Salt Company. Salt Company reported shares outstanding of $350,000 and retained earnings of $100,000. During 20X8, Salt Company reported net income of $60,000 and paid dividends of $3,000. In 20X9, Salt Company reported net income of $90,000 and paid dividends of $15,000. The following transactions occurred between Pepper Company and Salt Company in 20X8 and 20X9: Salt Co. sold equipment to Pepper Co. for a $42,000 gain on December 31, 20X8. Salt Co. had originally purchased the equipment for $140,000 and it had a carrying value of $28,000 on December 31, 20X8. At the time of the purchase, Pepper Co. estimated that the equipment still had a seven-year remaining useful life. Pepper sold land costing $90,000 to Oregano Company on June 28, 20X9, for $110,000. Required: Give all consolidating entries needed to prepare a consolidation worksheet for 20X9 assuming that Pepper Co. uses the modified equity method to account for its investment in Oregano Company.