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Please show how you got the answers please! Thank you. Pam Corporation holds 70 percent ownership of Spray Enterprises. On December 31, 20X6, Spray paid

Please show how you got the answers please! Thank you.

Pam Corporation holds 70 percent ownership of Spray Enterprises. On December 31, 20X6, Spray paid Pam $35,500 for a truck that Pam had purchased for $40,500 on January 1, 20X2. The truck was considered to have a 15-year life from January 1, 20X2, and no residual value. Both companies depreciate equipment using the straight-line method. Required: a. Prepare the worksheet consolidation entry or entries needed on 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.)

No Event Accounts Debit Credit
A 1 Gain on sale of truck
Truck 5,000
Accumulated depreciation

b. Prepare the worksheet consolidation entry or entries needed on December 31, 20X7, to remove the effects of the intercompany sale. (Do not round intermediate calculations. If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

No Event Accounts Debit Credit
A 1 Investment in Spray
Truck 5,000
Accumulated depreciation
B 2 Accumulated depreciation
Depreciation expense

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