On January 1, 2016, Parent Company Acquired 100% of the Common

On January 1, 2016, Parent Company acquired 100% of the common stock of Subsidiary Company for $750,000.On this date Subsidiary had total owners' equity of $540,000.
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Any excess of cost over book value is attributable to land, undervalued $10,000, and to goodwill.
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During 2016 and 2017, Parent has appropriately accounted for its investment in Subsidiary using the simple equity method.
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On January 1, 2017, Parent held merchandise acquired from Subsidiary for $10,000.During 2017, Subsidiary sold merchandise to Parent for $100,000, of which $20,000 is held by Parent on December 31, 2017.Subsidiary's usual gross profit on affiliated sales is 40%.
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On December 31, 2017, Parent still owes Subsidiary $20,000 for merchandise acquired in December.
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On January 1, 2017, Parent sold to Subsidiary some equipment with a cost of $50,000 and a book value of $20,000.The sales price was $40,000.Subsidiary is depreciating the equipment over a five-year life, assuming no salvage value and using the straight-line method.
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Required:
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Prepare the worksheet eliminations that would be made on the 2017 consolidated worksheet as a result of:
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1) the intercompany sale of inventory
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2) the intercompany sale of equipment