The Following Information Relates to Equipment Sales Between a Parent

The following information relates to equipment sales between a parent and its subsidiary.
•At the beginning of 2019, the parent sold equipment with a 10-year remaining life and a book value of $80,000 to the subsidiary for $100,000. The subsidiary still holds the equipment at the end of 2020.
•At the beginning of 2019, the subsidiary sold equipment with a 5-year remaining life and a book value of $50,000 to its parent for $80,000. The parent still holds the equipment at the end of 2020.
Required
a. Prepare the eliminating entries (I) for the 2020 consolidation working paper for the above intercompany transactions. Use a net book value account for the equipment (do not separate out the original cost and accumulated depreciation accounts).
b. Now assume that in each case, the equipment was sold to an outside company at the end of 2020. Repeat the requirements of part a.
c. Now assume that in each case, the equipment was sold to an outside company at the beginning of 2020. Repeat the requirements of part a.