i) Skyline Company (a 60%-owned subsidiary) sells merchandise to its parent, Peng Corporation, at a 25% markup on selling price and Peng sells to Skyline at a markup of 30% on cost. Merchandise acquired from affiliate is then sold to outside customers. Transactions between the affiliates during the year ended 12/31/2018 ure given below: Skyline 39,000 26,000 273,800 49,400 Peng nventories at 1/1/2018, acquired from affiliate Acquired from affiliate during 2018 nventories at 12/31/2018, acquired from affiliate 203,500 37,700 Prepare the working paper eliminating entry (in journal entry format) for the intercompany sale of merchandise for Peng Corporation and subsidiary for the year ended December 31, 2018. At what total amount should the intercompany merchandise be reported on the December 31, 2018 consolidated balance sheet? How (increase or decrease and the amount) is Peng's 2018 equity in income of Skyline affected by these transactions