W owned equipment with an estimated life of 10 years when it was acquired for a cost of $80,000. The equipment had a book value of $50,000 at January 1, 2016. On January 1, 2016, W realized that the useful life of the equipment was longer than originally anticipated, at ten years. On April 1, 2016, S, a 90% subsidiary bought the equipment from W for $68,250 and for depreciation purposes used the estimated remaining life as of that date. The following data are available for S’s income and dividends: Fiscal years…………………………………………..2016 2017 2018 Net income………………………………………100,000 120,000 130,000 Dividends……………………………………………40,000 50,000 60,000 a. Record the sale of the equipment by W to S. b. Prepare the necessary consolidation adjusting entry to depreciation for 2016.