Eliminating Entries After First and Second Years During 2023, Peerless Company's wholly-owned subsidiary, Safeco Inc. reported net income of $2,100,000 and declared and paid dividends of $800,000. Peerless acquired Safeco on January 2, 2023, at a cash cost of $10,000,000, which was $6,000,000 in excess of the book value of net assets acquired. Safeco's equipment (5-year life) was overvalued by $500,000. Its inventory, reported using FIFO, was overvalued by $200,000. The remaining excess of acquisition cost over book value was attributed to goodwill. Impairment testing indicates that goodwill was impaired by $100,000 during 2023. Safeco's date of acquisition inventory was sold during 2023. b. Safeco reported net income of $1,600,000 and declared and paid dividends of $800,000 in 2024. There was no further goodwill impairment. Prepare the journal entries recorded by Peerless in 2024 to apply the complete equity method. Enter numerical answers using all zeros (do not abbreviate in thousands or in millions). Description Investment in Safeco Equity in net income of Safeco To record equity in net income. Investment in Safeco Cash To record dividends received. Debit 800,000 x 0 Credit 0 3,200,000 x 800,000 800,000 Prepare the necessary eliminating entries to consolidate the financial statements of Peerless and Safeco at December 31, 2024. Enter numerical answers using all zeros (do not abbreviate in thousands or in millions). Ref. Description (C) Equity in net income of Safeco Dividends-Safeco Debit 8,000,000 x Credit 0 800,000 Investment in Safeco 0 1,100,000 x (E) Stockholders' equity-Safeco Investment in Safeco 0 x 0 0 x (R) Goodwill Equipment, net Investment in Safeco 300,000 x 0 0 400,000 650,000 x (O) Equipment, net 100,000 Depreciation expense 0 100,000