Peterson Co. owns 100% of the outstanding common stock of Silver Corp.

For the situation below, prepare Peterson's eliminating journal entries required for consolidation purposes for the year ended December 31, Year 3.

Situation 2. Throughout Year 3, Peterson sold merchandise costing $30,000 to silver at a price of $50,000. Silver sold 60% of the inventory by December 31, Year 3. Silver remitted payment to Peterson before year end.