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 2008,Kinson reported earnings of $100,000 and paid cash dividends of $40,000.During 2008,Kinson acquired inventory for $62,400,which was then sold to Jager for $96,000.At the end of 2008,Jager still held some of this inventory at its transfer price of $50,000.
Required:
Determine the amount of Equity in Investee Income Jager should have reported for 2008.

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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 2008,Kinson reported earnings of $100,000 and paid cash dividends of $40,000.During 2008,Kinson acquired inventory for $62,400,which was then sold to Jager for $96,000.At the end of 2008,Jager still held some of this inventory at its transfer price of $50,000.
Required:
Determine the amount of Equity in Investee Income Jager should have reported for 2008.

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