Inter-Company Sales of Inventory Acquirer Company purchased 70% of the outstanding shares of acquire whose book value on the date of acquisition amounted P500,000 that results to a P50,000 partial goodwill. On the date of acquisition, January 1, 2020, the noncash assets of the Acquiree Company whose book values did not equal their fair values were accounts receivable understated by P10,000, inventory overstated by P15,000, machineries with remaining life of 5 years is overstated by P50,000. The result of operation of the acquirer and the Acquires Company for 2020, 2021, and 2022 were as follows: Particulars 2020 2021 2022 Acquirer's Sales 1,000,000 1, 100,000 1,150,000 Acquiree's Sales 800,000 850,000 900,000 Acquirer's Cost of Sales 600,000 650,000 700,000 Acquiree's Cost of Sales 350,000 375,000 400,000 Acquirer's Net Income 300,000 325,000 350,000 Acquiree's Net Income 200,000 225,000 250,000 Acquirer Dividends declared 10,000 15,000 20,000 Acquiree Dividends declared 7,000 9,000 11,000 Acquirer Intercompany sales 20,000 25,000 30,000 Acquirer's Mark-up on Intercompany sales 10% 15% 20% Acquiree's Intercompany sales 12,000 15,000 20,000 Acquiree's Mark-up on Intercompany sales 20% 25% 25% Acquirer's Intercompany ending inventory 2020 Purchases 6,000 3,000 500 2021 Purchases 4,500 2022 Purchases 4,000 Acquiree's Intercompany ending inventory 2020 Purchases 5,000 4,000 500 2021 Purchases 6,000 2,000 2022 Purchases 2,000 Acquirer's ending inventory 30,000 35,000 40,000 Acquiree's ending inventory 20,000 25,000 30,000 Acquirer Accumulated profits, beg 150,000 Acquiree Accumulated profits, beg 90,000 Requirement: Prepare Elimination entries for years 2020, 2021, and 2022. Due 5:59PM of December 7, 2020