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On January 1st 2010 Bilbo Company acquired all of the voting stock of Froto Company at book value Bilbo accounts for its investment in Froto using the initial value method (cost method) and Froto does not pay dividends On January 1st 2015 Bilbo purchased a piece of equipment for $500,000. This equipment has a 10 year life with no salvage and Bilbo uses straight line depreciation On January 1st 2020 Bilbo sold the equipment to Froto for $280,000. Froto gave Bilbo a 1 year 10% note with principal and interest due January 1st 2021. Froto believes the equipment will last 5 years with no salvage. Froto also uses straight line depreciation In 2020, Bilbo reported income (unconsolidated) $222,000 Froto reported income of $45000 In 2021, Bilbo reported income (unconsolidated) for $250000 Froto reported income of $59000 On January 1st 2022 Froto sold the equipment to Samwise for $111,000 cash In 2022 Bilbo reported income of $255000 (unconsolidated) Froto reported income of $61000 REQUIRED: A) Make the journal entry Bilbo makes when it sells the equipment to Froto B) Make the journal entry Froto makes when it buys the equipment from Bilbo C) Make any worksheet entries needed in 2020 D) What is consolidated income for 2020 E) Make any worksheet entries needed in 2021 F) What is consolidated income in 2021 G) Make the journal entry Froto makes when it sells the equipment to Samwise H) make any worksheet entries for 2022 D) What is 2022 consolidated income

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