Pit Corporation owns 85% of Stop Companys outstanding common stock. On 07/01/18, Pit sold inventory to Stop in exchange for $560,000 cash. Pits cost of the inventory was $420,000.

On 12/18/18, Stop sold 60% of the inventory to 3rd parties at a cash price of $448,000. The other 40% of the inventory remains on hand at 12/31/18.

Prepare below the journal entries prepared by Pit and Stop during 2018