Problem #1 Pilton Corporation sold a press to its 80%-owned subsidiary, Sagri Inc., for $5,000 on January 1, 2016. The press originally was purchased by Hilton on January 1, 2015, for $20,000, and $6,000 of depreciation for 2015 had been recorded. The fair value of the press on January 1, 2016, was $10,000. Sagri proceeded. to depreciate the press on a straight-line basis, using a 5-year life and no salvage value. On December 31, 2017, Sagri, having no further need for the machine, sold it for $2,000 and recorded a loss on the sale. Required: Prepare ALL elimination entries that would be necessary to consolidate Pilton and Sagri (a) as of December 31, 2016 and (b) as of December 31, 2017.

Problem \#1 Pilton Corporation sold a press to its 80%-owned subsidiary, Sagri Inc., for $5,000 on January 1, 2016. The press originally was purchased by Hilton on January 1,2015 , for $20,000, and $6,000 of depreciation for 2015 had been recorded. The fair value of the press on January 1,2016, was $10,000. Sagri proceeded to depreciate the press on a straight-line basis, using a 5-year life and no salvage value. On December 31 , 2017 , Sagri, having no further need for the machine, sold it for $2,000 and recorded a loss on the sale. Required: Prepare ALL elimination entries that would be necessary to consolidate Pilton and Sagri (a) as of December 31, 2016 and (b) as of December 31, 2017