Pitcher Corporation purchased 60 percent of Softball Corporations voting common stock on January 1, 20X1. On December 31, 20X5, Pitcher received $273,000 from Softball for a truck Pitcher had purchased on January 1, 20X2, for $353,000. 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.)

1. Record the entry to eliminate the gain on the truck and to correct the asset's basis.

Calculations:

For Truck
Purchase Price	353,000
Less: Price Paid by Softball	273,000
	80,000
Gain on sale of Truck
Depreciation per year =353,000/ 10	35,300
Depreciation for 3 years = 35,300*3	105,900
Truck value on date of sale = 353,000-105,900	247,100
Value received	273,000
Gain on sale of Truck = 273,000-247,100	25,900

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.)

1. Record the entry to eliminate the gain on the truck and to correct the asset's basis.
2. Record the entry to adjust Accumulated Depreciation.

Calculations:

Accumulated Depreciation Adjustment:
(353,000/10 years) x 4 years =	141,200
(273,000/7 years) x 1 year =	(39,000)
Increase	102,200
Depreciation Expense = 25,900/7 = 3,700

Part a.

Please help find Gain on Sale and Accumulate depreciation.

Part b.

Please help find Investment in Softball Corp., Accumulated Depreciation, and Depreciation expense.

I have provided my calculations. What am I doing wrong?

Answer is complete but not entirely correct. No Event Accounts Debit Credit A 1 Gain on sale Truck Accumulated depreciation 25.900 80,000 105,900 Answer is complete but not entirely correct. No Event Debit Credit A 1 25,900 Accounts Investment in Softball Corporation Truck Accumulated depreciation 80,000 102,200 B 2 3,700 Accumulated depreciation Depreciation expense > 3,700 X