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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

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