Ponds owned a machine with an original cost of $100,000. It had been depreciated in the last 7 years on the straight-line method with 10 years of life and no salvage value. On January 1, 2017, Ponds sold the machine to Square One Corporation (a 75%-owned subsidiary) for $42.000 in cash.

Thereafter, Square One provided for depreciation also on the straight-line method with 3 more years of life after the date of purchase and no salvage value. On Jan 1, 2019, Square One sold the machine to an outside company for $15,000

1)Prepare the working paper entries for the intercompany sale of machine on December 31,2017.

2 Prepare the working paper entries relating to the machine on December 31,2018.

3)Bonus Question:Prepare the working paper entries relating to the machine on December 31,2019.