Jager Inc.holds 30% of the outstanding voting shares of Kinson Co.and appropriately applies the equity method of accounting.Amortization associated with this investment equals $11,000 per year.For 2018, Kinson reported earnings of $100,000 and paid cash dividends of $40,000.During 2018, Kinson acquired inventory for $62,400, which was then sold to Jager for $96,000.At the end of 2018, Jager still held some of this inventory at its intra-entity selling price of $50,000.
Required:
Determine the amount of Equity in Investee Income that Jager should have reported for 2018.

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The Answer of Jager Inc.holds 30% of the outstanding voting shares of Kinson Co.and appropriately applies the equity method of accounting.Amortization associated with this investment equals $11,000 per year.For 2018, Kinson reported earnings of $100,000 and paid cash dividends of $40,000.During 2018, Kinson acquired inventory for $62,400, which was then sold to Jager for $96,000.At the end of 2018, Jager still held some of this inventory at its intra-entity selling price of $50,000.
Required:
Determine the amount of Equity in Investee Income that Jager should have reported for 2018.

Jager IncHolds 30% of the Outstanding Voting Shares of Kinson Co