Pitcher Corporation purchased 60 percent of Softball Corporations voting common stock on January 1, 20X1. On December 31, 20X5, Pitcher received $234,000 from Softball for a truck Pitcher had purchased on January 1, 20X2, for $304,000. 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:

1. Prepare the worksheet consolidation entry or entries needed at December 31, 20X5, 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 field.

b. Prepare the worksheet consolidation entry or entries needed at December 31,206, 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 field. 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 entries needed at December 31,206, 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 field. 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. 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