BuyCo, Incorporated, holds 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 $ per year. For Marqueen reported earnings of $ and declares cash dividends of $ During that year, Marqueen acquired inventory for $ which it then sold to BuyCo for $ At the end of BuyCo continued to hold merchandise with a transfer price of $
a What Equity in Investee Income should BuyCo report for
b How will the intraentity transfer affect BuyCo's reporting in
c If BuyCo had sold the inventory to Marqueen, would your answers to parts a and b change?
a Equity in investee income
b Equity accrual for will be
c If BuyCo had sold the inventory to Marqueen, would your answers to parts a and b change?
