Please give explanation, it really helps! Thank you Preparing the [I] consolidation entries for sale of landAssume that during 2015 a wholly owned subsidiary sells land that originally cost $450,000 to its parent for a sale price of $500,000. The parent holds the land until it sells the land to an unaffiliated company on December 31, 2019. The parent uses the equitymethod of pre-consolidation bookkeeping.a. Prepare the required [I] consolidation entry in 2015.DescriptionDebitCredit[lgain][gain]♦b. Prepare the required [I] consolidation entry required at the end of each year 2016 through 2018.DescriptionDebitCredit[lgain]Land+◆00→♦♦◆00c. Assume that the parent re-sells the land outside of the consolidated group for $525,000 on December 31, 2019. Prepare the journal entry made by the parent to record the sale and the required [1] consolidation entry for 2019.DescriptionDebitCredit00000000000000d. What will be the amount of gain reported in the consolidated income statement in 2019?$0

Solution: entries : a. Date Description Debit $ Credit $ a. Gain on sale $ 50,000…

Preparing the [1] consolidation entries for sale of land Assume that during 2015 a wholly owned subsidiary sells land that originally cost $450,000 to its parent for a sale price of $500,000. The parent holds the land until it sells the land to an unaffiliated company on December 31, 2019. The parent uses the equity method of pre-consolidation bookkeeping. a. Prepare the required [] consolidation entry in 2015. Description Debit Credit [gain] b. Prepare the required [I] consolidation entry required at the end of each year 2016 through 2018. Description Debit Credit [gain] [gain] ÷ Land c. Assume that the parent re-sells the land outside of the consolidated group for $525,000 on December 31, 2019. Prepare the journal entry made by the parent to record the sale and the required [1] consolidation entry for 2019. Description Debit Credit 0 0 ÷ ÷ 0 0 0 0 0 0 0 0 0 0 0 0 d What will be the amount of gain reported in the consolidated income statement in 20192