0. Equity method deferred intercompany profits Despite a 50% ownership interest, Lions Gate Entertainment Corp. (Lionsgate) accounts for its invest- ment in TVGN, formerly known as the TV Guide Network, using the equity method of accounting. The company reports the following in its 2014 10-K: TVGN. The Company's investment interest in TVGN consists of an equity investment in its common stock units and mandatorily redeemable preferred stock units. The Company has determined it is not the primary beneficiary of TVGN because pursuant to the amended and restated operating agreement of the entity, the power to direct the activities that most significantly impact the economic performance of TVGN is shared with the other 50% owner of TVGN. Accordingly, the Company's interest in TVGN is being accounted for under the equity method of accounting. During the year ended March 31, 2014, the Company contributed $6.5 million to TVGN. Additionally, the Company contributed $4.5 million to TVGN in April 2014. Transactions with TVGN Lionsgate eliminates gross profit recognized by the Company on licensing sales to TVGN in proportion to the Company's ownership interest in TVGN. There were no revenues or gross profits for licensed product to TVGN recognized by Lionsgate for the year ended March 31, 2014. The table below sets forth the revenues and gross profits recognized by the Company and the calculation of the profit eliminated for the years ended March 31,2013 and 2012: Year Ended March 31, (amounts in thousands) 2013 2012 Gross profit on sales to TVGN... Ownership interest in TVGN. . . 687 50% $2,925 969 51% What amount of intercompany profits from TVGN does Lionsgate defer or eliminate for the year ended March 31, 2013? How does the deferral or elimination of TVGN intercompany profits impact Lionsgate's equity income and investment accounts? a. b