Santa Corporation is70percent owned subsidiary of Panta Corporation, acquired by Panta on January 1, 20X1 for $280,000 when Santa's common stock and retained earnings were $100,000 and $150,000 respectively. All book values of Santa's assets and liabilities were equal to their fair values except inventory which was undervalued by $50,000 and unrecorded patent which its fair value is equal the remaining of differential value with remaining life of 10 years.Both firms are using FIFO method of inventory.Followings are the transactions of merchandize between these two firms:

13. Show, in detail, working paper eliminating entries for all inter-companymerchandiseinventory transactions in order to prepare 20x2 consolidated financial statements(1 points).

14.Prepare Consolidated Income Statement for year 20X2 (1 point)

1. 14.