Hilton Corporation sold a press to its 80%-owned subsidiary, Agri Fab Inc., for $5,000 on January 1, 2016. The press originally was purchased by Hilton on January 1, 2015, for $20,000, and $6,000 of depreciation for 2015 had been recorded. The fair value of the press on January 1, 2016, was $10,000. Agri Fab proceeded to depreciate the press on a straight-line basis, using a 5-year life and no salvage value. On December 31, 2017, Agri Fab, having no further need for the machine, sold it for $2,000 and recorded a loss on the sale.

Explain the adjustments that would have to be made to the separate income statements of the two companies to arrive at the consolidated income statements for 2016 and 2017.