Jasper 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 20x1 , Kinson reported earings of 100,000 and paid cash dividends of $40,000. During 20x1, Kinson acquired inventory for $62,400. Which was then sold to jasper fpr $96,000. at the end of 20x1 , jasper still had some of this inventory at its transfer price of 50,000
1. Determine the amount of intra- entity at the end of 20x1
2. Determine the amount of equity in investee income that Jasper should have reported fpr 20x1