QUESTION 2 Not yet answered Marked out of 31.00 F Flag question Preparing the Dil consolidation journal 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 life (straight-line with no salvage value). The parent has adopted the subsidiary's depreciation policy and depreciates the equipment over the remaining useful life of 8 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) Annual depreciation expense-subsidiary Annual depreciation expense-parent b. Compute the pre-consolidation Gain on Sale recognized by the subsidiary during 2014