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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 recelved $252,000 from Softball for
Pitcher Corporation purchased 60 percent of Softball Corporation's voting common stock on January 1, 20X1. On December 31, 20X5, Pitcher recelved $252,000 from Softball for a truck Pitcher had purchased on January 1,202, for $332,000. The truck is expected to have a 10 -year useful Iffe and no salvage value. Both companles depreclate trucks on a stralght-line basis. Required: a. Prepare the worksheet consolidation entry or entrles needed at December 31,205, to remove the effects of the Intercompany sale. Note: If no entry Is required for a transaction/event, select "No journal entry required" In the first account fleld. Consolidation Worksheet Entries Record the entry to eliminate the gain on the truck and to correct the asset's basis. Note: Enter debits before credits. b. Prepare the worksheet consolidation entry or entrles needed at December 31, 20X6, to remove the effects of the intercompany sale. Note: If no entry is requlred for a transaction/event, select "No journal entry required" In the flist account fleld. Consolidation Worksheet Entries Record the entry to eliminate the gain on the truck and to correct the asset's basis. Note: Enter debits before credits
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