Pitcher Corporation purchased 60 percent of Softball Corporations voting common stock on January 1, 20X1. On December 31, 20X5, Pitcher received $300,000 from Softball for a truck Pitcher had purchased on January 1, 20X2, for $360,000. 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.)

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 complete but not entirely correct. No Event Credit . 1 Accounts Gain on sale Truck Accumulated depreciation Debit 48,000 X 60,000 108,000 Answer is not complete. Credit No A Event 1 Accounts Gain on sale Truck Accumulated depreciation Debit 48,000 x 60,000 108,000 B 2 Investment in Softball Corporation Truck Accumulated depreciation 41,143 60,000 101,143