Smith company sold a machine to Pippen On Jan 1, year 14. Smith comp bough the machine on january 1, year 11. Straight line deprecation is being used. the original life of the machine was not changed

Orignal Cost to S company 150,000

sales price to pippen company 108,750

original life of machine 8 years

What would the consolidation entries look like for P in year 2016 and how would they affect net income ans book value for year16? p owns 90 percent of s.

thanks