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Question - Pitcher Corporation purchased 60 percent of Softball Corporation's voting common stock on January 1, 20X1. On December 31, 20X5, Pitcher received $255,000 from Softball for a truck Pitcher had purchased on January 1, 20X2, for $335,000. The truck is expected to have a 10-year useful life and no salvage value. Both companies depreciate trucks on a straight-line basis.
Required -
a. Prepare the worksheet consolidation entry or entries needed at December 31, 20X5, to remove the effects of the intercompany sale.
b. Prepare the worksheet consolidation entry or entries needed at December 31, 20X6, to remove the effects of the intercompany sale.
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