Preparing the (I) consolidation entries for sale of depreciable assets- Equity method Assume that on January 1, 2014, a wholly owned subsidiary sells to its parent, for a sale price of $115,000, equipment that originally cost $150,000. The subsidiary originally purchased the equipment on January 1, 2010, and depreciated the equipment assuming a 12-year useful (straight-line with no salvage value). The parent has adopted the subsidiarys depreciatation policy and depreciates the equipment over the remaining useful life of years. The parent uses the equity method to account for its Equity investment. a. Compute the annual pre-consolidation depreciation expense for the subsidiary (pre-intercompany sale) and the parent (post-intercompany sale). b. Compute the pre-consolidation Gain on sale recognized by the subsidiary 2014. c. Prepare the required (I) consolidation entry in 2014 (assume a full year of depreciation). d. Now assume that you are preparing the year-end consolidation entries for the year ending December 31, 2016. Prepare the required (I) consolidated entries during the holding period. e. How long must we continue to make the (I) consolidation entries?