An investor owns 25% of an investee, and accounts for its investment using the equity method. At the beginning of the year, the Equity Investment was reported on the investor's balance sheet at $800,000. During the year, the investee reported net income of $320,000 and paid dividends of $80,000. In addition, the investor sold inventory to the investee, realizing a gross profit of $96,000 on the sale. At the end of the year, 30% of the inventory remained unsold by the investee. Required:
a. Provide the equity method journal entries required for the year
b. What is the balance of the Equity Investment at the end of the year?
c. Assume that the inventories are all sold in the following year, that the investee reports $540,000 of net income. How much equity income will the investor report for the following year?

Read the overview below and complete the activities that follow.apartment complexes often look for ways to recruit new tenants and retain current tenants. although apartment complexes offer the tangible benefit of shelter to their tenants, many apartment complexes also offer additional services to tenants to encourage tenants to stay or to support the rent prices. the following scenario identifies the several service gaps of a company that runs an apartment complex as well as solutions for reducing these service gaps.concept review: customers have certain expectations about how a service should be delivered. a service gap occurs when the delivery of a service fails to meet customer expectations. there are four types of service gaps: knowledge gap, standards gap, delivery gap, and the communications gap. it is important for marketers to identify these gaps and develop strategies for minimizing them.match the example or solution to the appropriate service gap category.1. wait for repairs 5. train employees well2. understand expectations 6. incentives for tenants3. do not overpromise 7. family movie night4. empower employees 8. delayed lawn careservice gap example solutionknowledge gap standards gap delivery gap communication gap