Pond Corporation holds $75$ percent of the voting

shares of Spring Services Company. During $20$X$7,$

Pond sold inventory costing $$78,000$ to Spring

Services for $$102,000,$ and Spring Services resold

one$-$third of the inventory in $20$X$7.$ The remaining

inventory was resold in $20$X$8.$ Also in $20$X$7,$ Spring

Services sold land with a book value of $$125,000$ to

Pond for $$260,000.$ Pond continues to hold the land

at the end of $208.$ The companies file separate tax

returns and are subject to a $40$ percent tax rate.

Required:

Prepare the consolidation entries relating to the

intercorporate sale of inventories and land needed in

the consolidation worksheet at the end of $20$X$8.$

Assume that Pond uses the equity method in

accounting for its investment in Spring Services.

Note: If no entry is required for a transaction$/$event$,$

select $"$No journal entry required" in the first

account field.

Record the entry to eliminate the beginning inventory profit.

Record the entry to eliminate the unrealized gain from the sale of

the land.