Pretty purchases all the common stock of Star at $10,000 more than book value in 20X1. All the differential relates to land that Star had purchased earlier for $25,000. Star than sells the land to an unrelated company for 32,000 in 20X2.

Questions:

1. Give the book entry required by Pretty in relation to the sale of land.
2. Give the consolidation entry required by Pretty in relation to the sale of land.