Acker Inc. bought 40% of Howell Co. on January 1, 2017 for $576,000. The equity method of accounting was used. The book value and fair value of the net assets of Howell on that date were $1,440,000. Acker began supplying inventory to Howell as follows:

		Cost to		Transfer		Amount Held by
Year		Acker		Price		Howell at Year-End
2017		$55,000		$ 75,000		$15,000
2018		$70,000		$110,000		$55,000

Howell reported net income of $100,000 in 2017 and $120,000 in 2018 while paying $40,000 in dividends each year.

5. What is Ackers share of the intra-entity inventory gross profit that should be deferred on December 31, 2018?

A) $ 1,600.

B) $ 8,000.

C) $15,000.

D) $20,000.

E) $40,000

8. What is the Equity in Howell Income that should be reported by Acker in 2018?

A) $32,000.

B) $41,600.

C) $48,000.

D) $49,600.

E) $50,600.

9. What is the balance in Ackers Investment in Howell account at December 31, 2018?

A) $624,000.

B) $636,000.

C) $646,000.

D) $656,000.

E) $666,000.

What I need is the steps for all the above solutions. Thanks.