Springdale Corporation holds 75 percent of the voting shares of Holiday Services Company. Assume Springdale accounts for this investment using the equity method. During 20X7, Springdale sold inventory costing $72,000 to Holiday Services for $108,000, and Holiday Services resold one-third of the inventory in 20X7. Also in 20X7, Holiday Services sold land with a book value of $140,000 to Springdale for $230,000, and Springdale continues to hold the land. The companies file separate tax returns and are subject to a 40 percent tax rate.

Required:

Prepare the consolidation entries relating to the inter corporate sale of inventories and land to be entered in the consolidation worksheet prepared at the end of 20X7.