(Solved): 2) Suntop Corporation is an 80% owned subsidiary of Pentop Corporation, acquired for $240,000 on Ja ...

2) Suntop Corporation is an $$80\%$$ owned subsidiary of Pentop Corporation, acquired for $$\$240,000$$ on January 1, 2021. (6 Marks) - Investment Cost was equal to book value and fair value. - Suntop's net income in 2021 was \$ 60,000 and Pentop's income, excluding its income from Suntop, was 80,000 . - Pentop's income includes a $$\$12,000$$ unrealized gain on land that cost $$\$42,000$$ and was sold to Suntop for $$\$54,000$$. - Assume that Suntop sold the land in 2023 for $$\$60,000$$. - Assume Pentop adjust for this transaction in the equity accounts. Required: 1) What Entries would Pentop make in 2021 and 2023 ? 2) Prepare the Consolidation Entries at December 31, 2021, December 31, 2022 and December 31, 2023.