**Please submit in an excel spreadsheet format. Thank you!

In response to "expert" comment. This is the problem exactly as given in the text. Obviously a balance sheet is not required.

PROBLEM 7-1 Workpaper Journal Entries and Income Statement Balances Powell Company owns 80% of the outstanding common stock of Sullivan Company. On June 30, 2011, Sullivan Company sold equipment to Powell Company for $500,000. The equipment cost Sullivan Company $780,000 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 four years from June 30, 2011. In 2012, Powell Company reported $300,000 and Sullivan Company reported $200,000 in net income from their independent operations (including sales to affiliates but excluding dividend or equity income from subsidiary) LO6 L07 LO8