Pond Corporation owns 75% of Skate's Company's stock. Pond sold building to Skate for $65,000 on December 31, 20X7. Pond had purcahsed the building for $125,000 and was depreciating it on a straight-line basis over 25 years. At the time of sale, Pond reported accumulated depreciation of $75,000 and a remaining life of 10 years.

A)Prepare the 20X8 journal entries recorded on Ponds books related to its investment in Skate if Pond uses the fully adjusted equity method.

B)Prepare all eliminating entries needed at December 31, 20X8 to complete a three-part consolidation worksheet.