Explanation please! It really helps! Preparing the [I] consolidation entries for sale of depreciable assets-Equity methodAssume that on January 1, 2016, a parent sells to its wholly owned subsidiary, for a sale price of $243,000, equipment that originally cost $276,000. The parent originally purchased the equipment on January 1, 2012, and depreciated the equipment assuming a 10-year useful life (straight-line with no salvage value). The subsidiary has adopted the parent's depreciation policy and depreciates the equipment over the remaining useful life of 6 years. The parent uses the equity method to account for its Equity Investment.a. Compute the annual pre-consolidation depreciation expense for the subsidiary (postintercompany sale) and the parent (pre-intercompany sale).Subsidiary - depreciation $ 0Parent depreciation $ 0b. Compute the pre-consolidation Gain on Sale recognized by the parent during 2016.$0c. Prepare the required [I] consolidation entry in 2016 (assume a full year of depreciation).DescriptionDebitCredit[lgain] Equipment[Idep][lgain] Equipment+◆→[Idep]◆d. Prepare the required [l] consolidation entry in 2019 (assuming the subsidiary is still holding the equipment).DescriptionDebitCredit◆00000→ooooo000000000000000

The equity method has been used by the parent company for the recording of such a transaction which…

a. Compute the annual pre-consolidation depreciation expense for the subsidiary (postintercompany sale) and the parent (pre-intercompany sale). Subsidiary-depreciation $ 0 Parent-depreciation $ 0 b. Compute the pre-consolidation Gain on Sale recognized by the parent during 2016. $0 c. Prepare the required [1] consolidation entry in 2016 (assume a full year of depreciation). Description Debit Credit [gain] Equipment [idep] [gain] Equipment ÷ ÷ ÷ [Idep] d. Prepare the required [I] consolidation entry in 2019 (assuming the subsidiary is still holding the equipment). Description Debit Credit ooo # 0 0 ÷ 0 0 0 0 ooooo 0 0 0 0 0 0 0 0 ooooo