Plato Company sold equipment to its wholly owned subsidiary, Sawyer Company, on January 2,2013. At time of sale, Plato's books showed the equipment at cost of $750,000 and accumulated depreciation of $200,000. Sawyer bought the equipment for $800,000 and depreciated it over its remaining five-year life (straight-line, no salvage value).
Required
a. Prepare the necessary consolidation eliminating entries at December 31,2013.
b. Prepare the necessary consolidation eliminating entries at December 31,2014.