Problem II: (10 Points) On January 1, 20X7, Pillow Corporation sold to Sheet Corporation equipment it had urchased for $150,000 and used for eight years. Pillow recorded a gain of $14,000 on the ale. The equipment has a total useful life of 15 years and is depreciated on a straight-line asis. Pillow holds 70 percent of Sheet's voting common shares. Required 150.... 30 (a) Give the journal entry made by Pillow on January 1, 20X7, to record the sale of equipment. b) Give the journal entries recorded by Sheet during 20X7 to record the purcha equipment and year-end depreciation expense.