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Padre holds 100 percent of the outstanding shares of Sonora. On January 1,2022, Padre transferred...

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Accounting

Padre holds 100 percent of the outstanding shares of Sonora. On January 1,2022, Padre transferred equipment to Sonora for $80,000. The equipment had cost $131,000 originally but had a $41,000 book value and five-year remaining life at the date of transfer. Depreciation expense is computed according to the straight-line method with no salvage value.
Consolidated financial statements for 2024 currently are being prepared.
Required:
What worksheet entries are needed in connection with the consolidation of this asset? Assume that the parent applies the partial equity method.

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