Photo Industries has owned 80 percent of Shutter Corporation for many years. On January 1, 20X6, Photo paid Shutter $270,000 to acquire equipment that Shutter had purchased on January 1, 20X3, for $288,000. The equipment is expected to have no scrap value and is depreciated over a 15-year useful life. Photo reported operating earnings of $110,000 for 20X8 and paid dividends of $40,000. Shutter reported net income of $44,000 and paid dividends of $22,000 in 20X8.

c. Prepare the consolidation entry or entries required to eliminate the effects of the intercompany sale of equipment in preparing a full set of consolidated financial statements at December 31, 20X8.