Preparing the [I] consolidation entries for sale of land Assume that during 2015 a wholly owned subsidiary sells land that originally cost $360,000 to its parent for a sale price of $400,000. The parent holds the land until it sells the land to an unaffiliated company on December 31, 2019. The parent uses the equity method of pre-consolidation bookkeeping. a. Prepare the required [I] consolidation entry in 2015. Description [Igain] Gain on sale Land Debit 40,000 Credit 0 40,000 b. Prepare the required [1] consolidation entry required at the end of each year 2016 through 2018. Description [Igain] Retained earnings Land Debit 40,000 Credit 0 40,000 c. Assume that the parent re-sells the land outside of the consolidated group for $420,000 on December 31, 2019. Prepare the journal entry made by the parent to record the sale and the required [I] consolidation entry for 2019. Description Cash Gain on sale Land [gain] Equity investment Gain on sale Debit 420,000 Credit 20,000 0 40,000 400,000 0 40,000 d. What will be the amount of gain reported in the consolidated income statement in 2019? $ 20,000 x