Powell Company owns 80% of the outstanding common stock of Sullivan Company. On June 30, 2014, Sullivan Company sold equipment to Powell Company for $500,000. The equipment cost Sullivan Company $780,000 and had accumulated depreciation of $400,000 on the date of the sale. The management of Powell Company estimated that the equipment had a remaining useful life of four years from June 30, 2014. In 2015, Powell Company reported $300,000 and Sullivan Company reported $200,000 in net income from their independent operations (including sales to affiliates but excluding dividend or equity income from subsidiary). Powell uses Partial Equity method. A. Prepare the workpaper entries necessary because of the sale of equipment for the year ended December 31, 2014. B. Prepare the workpaper entries necessary because of the sale of equipment for the year ended December 31, 2015. C. Repeat A and B for complete equity method. (Cost Method): Pitts Company owns 80% of the common stock of Shannon Company. The stock was purchased for $960,000 on January 1, 2012, when Shannon Company's retained earnings were $675,000. On January 1, 2014, Shannon Company sold fixed assets to Pitts Company for $960,000; Shannon Company had purchased these assets for $1,350,000 on May 1, 2007, at which time their estimated useful life was 16 2/3 years (zero residual value). The estimated remaining useful life to Pitts Company on 1/1/14 is 10 years. Both companies employ the straight-line method of depreciation. Pitts Company Net income Dividend Shannon Company Net income Dividend Year 2015 435,000 150,000 300,000 75,000 Retained Earnings Pitts Company Shannon Company 1/1/2015 1,215,000 1,038,000 D. Determine Consolidated net income for 2015. E. Determine NCI income for 2015. F. Determine Retained Earnings balance (12/31/2015) on the consolidated balance sheets