Pitcher Corporation Purchased 60 percent of Softball Corporations voting common stock on January 1, 20x1. On January 1, 20x5, Pitcher received $297,000 from Softball for a truck Pitcher had purchased on January 1, 20x2, for $377,000. The truck is expected to have a 10-year useful life and no salvage value. Both companies depreciate trucks on a straight-line basis.

A) Prepare the consolidation entry or entries needed at December 31, 20x5, to remove the effects of the intercompany sale. Record the entry to eliminate the gain on the truck and to correct the assets basis. Record the entry to adjust Accumulated Depreciation

B) Prepare the worksheet consolidation entry or entries needed at December 31, 20x6, to remove the effects of the intercompany sale. Record the entry to eliminate the gain on the truck and to correct the assets basis. Record the entry to adjust Accumulated Depreciation