I would kindly seek your help and full explanation for the following question.

C- On January 1, 2019 Porto Corporation paid $81,000 for a 90% interest in Sardinia Corporation. On that date Sardinia capital stock was $50,000 and its Retained Earnings was $15,000. Any excess will be assigned to goodwill Further information: 1. During 2019, Porto's sales to Sardinia were $24,000, Sardinia managed to sell 50% of this merchandise. (The other half was sold in 2020.) 2. During 2020. Porto's sales to Sardinia were $30,000 of which Sardinia managed to sell 40% of this merchandise. At year-end 2020, Sardinia owed Porto $7,500 for the inventory purchased during 2020. Porto sells merchandise to Sardinia at 120% of Porto's cost. 3. On January 1, 2020, Porto sold equipment with a book value of $10,000 and a remaining useful life of four years and no salvage value to Sardinia for $14,000. Straight- line depreciation is used. 4. Sardinia's income for 2019 was $20,000 and Sardinia's dividends received by Porto was $9,000 5. Separate company financial statements for Porto Corporation and Subsidiary at December 31, 2020 are summarized in the first two columns of the consolidation working papers. Required: 1) Prepare all elimination entries in 2020 (Including the entries not affecting the consolidated Income statement). Show all your calculations. 2) Complete the working papers to consolidate the financial statements of Porto Corporation and subsidiary for the year ended December 31, 2020: Porto Sardinia Eliminations Consolidated Debit Credit INCOME STATEMENT Sales $ 300,000 $70,000 Income from Sardinia 23,000Gain on equipment sale 4,000 Cost of Sales (130 000) (22,000) Other Expenses (140 000) (18.000) Noncontrolling interest share Net income $ 57 000 $ 30.000 Retained Earnings 1/1 $ 47.500 $ 25,000 Add: Net income 57.000 30.000 Dividends 35 000) 10 000) Retained Earnings 12/31 $ 69,500 $ 45.000 BALANCE SHEET Cash $ 27 500 $ 15.000 Receivables 35.000 20.000 Inventories 50.000 22.500 Equipment-net 120.000 45.000 Land 20.000 17.500 Investment in Sardinia 102 000 Goodwill TOTAL ASSETS $ 354,500 $120.000 LIAB. & EQUITY Accounts payable $ 35 000 $ 25,000 Capital Stock 250.000 50.000 Retained Earnings 69.500 45.000 1/1 Nonentr), Interest 12/31 Nonentr] Interest TOTAL LIAR & EQUITIES $ 354,500 $120,000