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On January 1st 2020, Hightower Company acquired all of the stock of Striker Company at book value. Hightower uses the initial value method to account for its investment in Striker and Striker doesn't pay any dividends.

On January 1st 2015 Hightower purchased a piece of equipment for $100,000. This equipment is expected to last 10 years. with $7000 salvage; Hightower uses straight line depreciation.

On January 1, 2018, Hightower sold the equipment to Striker for $81,000 receiving a 1 year 12% note with principle and interest due January 1, 2019. Striker believes the equipment will last 7 years and have a $4000 salvage.

On January 1, 2021 Striker sold the equipment to Smith Co. (an outside company) for $57,000 cash.

A) Make Hightower's journal entry when they sold the equipment at to Striker

B) Make Striker's journal entry when they buy the equipment from Hightower

C) Make the necessary worksheet entries for 2018

D) Hightower reported unconsolidated income of $500,000 in 2018 and Striker reported income of $70,000. What is consolidated income?

E) Make the necessary worksheet entries for 2019

F) Make the journal entry Striker makes when it sells the equipment to Smith Co.

G) In 2021 Hightower reported income (unconsolidated) of $625,000 and Striker reported income of $123,000 what is consolidated income

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