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Pitcher Corporation purchased 60 percent of Softball Corporation's voting common stock on January 1, 20X1. On December 31, 20X5, Pitcher received $276,000 from Softball for
Pitcher Corporation purchased 60 percent of Softball Corporation's voting common stock on January 1, 20X1. On December 31, 20X5, Pitcher received $276,000 from Softball for a truck Pitcher had purchased on January 1, 20X2, for $346,000. The truck is expected to have a 10-year useful life and no salvage value. Both companies depreciate trucks on a straight-line basis. Required: a. Prepare the worksheet consolidation entry or entries needed at December 31, 20X5, to remove the effects of the intercompany sale. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) Answer is complete but not entirely correct. No Event Accounts Debit Credit . 1 Gain on sale Truck Accumulated depreciation 103.000 X 70.000 O 173.000 b. Prepare the worksheet consolidation entry or entries needed at December 31, 20X6, to remove the effects of the intercompany sale. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) Answer is not complete. No Event Debit Credit A 1 Accounts Investment in Softball Corporation Truck Accumulated depreciation B 2 Accumulated depreciation Depreciation expense
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