Moving to the next question prevents changes to this answer Question 10 Powell Company owns 90% of the common stock of Sullivan Company On June 30, 2019, Sullivan Company sold equipment to Powell Company for $350,000 The equipment cost Sullivan Company S600,000 and had accumulated depreciation of $400,000 on the date of the sale. The management of Powell Company estimated that the equipment had a remaining useful life of 5 years from June 30, 2019 In 2020. Powell Company reported $250,000 and Sullivan Company reported $100,000 in net income from their independent operations affiliates. DELL F6 FZ F8 F10 Fm 2 & 7 Y You are required to: 1. Prepare in general journal form the workpaper entries relating to the intercompany sale of equipment that are necessary in the December 31, 2020 consolidated financial statements workpapers Debit Credit Answer: 2020 Equipment Beginning retained eamings - P Non-controlling interest Accumulated depreciation Accumulated depreciation Depreciation expense Beginning retained earnings - P Non-controlling interest 2. Calculate controlling interest in consolidated income for 2020 i.e. P's income plus share of S. Answer: DELL Accumulated depreciation Depreciation expense Beginning retained earnings - P Non-controlling interest 2. Calculate controlling interest in consolidated income for 2020 i.e. P's income plus share of S. Answer: 3. Calculate noncontrolling interest in consolidated income for 2020. Answer: DELL