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. Required a. Prepare the journal entries recorded by Peerless in 2023 to record the acquisition and apply the complete equity method. Enter numerical answers using all zeros (do not abbreviate in thousands or in millions). Description Investment in Safeco Cash To record acquisition of Safeco. Credit Debit 10,000,000 0 10,000,000 Investment in Safeco 2,300,000 0 Equity in net income of Safeco 0 2,300,000 To record equity in net income. Cash 800,000 0 Investment in Safeco 0 800,000 To record dividends received.