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Business, 10.09.2019 19:30 juanitarodrigue

Buyco inc. holds 25 percent of the outstanding shares of marqueen company and appropriately applies the equity method of accounting. excess cost amortization (related to a patent) associated with this investment amounts to $10,000 per year. for 2017, marqueen reported earnings of $100,000 and declares cash dividends of $30,000. during that year, marqueen acquired inventory for $50,000, which it then sold to buyco for $80,000. at the end of 2017, buyco continued to hold merchandise with a transfer price of $32,000. what equity in investee income should buyco report for 2017? how will the intra-entity transfer affect buyco's reporting in 2018? if buyco had sold the inventory to marqueen, how would the answers to (a) and (b) have changed?

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