Pond Corporation holds 75 percent of the voting shares of Spring Services Company. Assume Pond accounts for this investment using the equity method. During 20X7, Pond sold inventory costing $60,000 to Spring Services for $90,000, and Spring Services resold one-third of the inventory in 20X7. Also in 20X7, Spring Services sold land with a book value of $140,000 to Pond for $240,000, and Pond continues to hold the land. 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 to be entered in the consolidation worksheet prepared at the end of 20X7. Assume that Pond uses the equity method in accounting for its investment in Spring Services.

a. Record the elimination entry for inventory purchases.

b. Record the entry to eliminate the tax expense on the unrealized profit from the inventory transfer.

c. Record the entry to eliminate the gain on the sale of land.

d. Record the entry to eliminate the tax expense on the unrealized profit from the land transfer.