Anderson acquires 10 percent of the outstanding voting shares of Barringer on January 1, 2013, for $107,720 and categorizes the investment as an available-for-sale security. An additional 20 percent of the stock is purchased on January 1, 2014, for $252,000, which gives Anderson the ability to significantly influence Barringer. Barringer has a book value of $930,000 at January 1, 2013, and records net income of $203,000 for that year. Barringer declared and paid dividends of $47,000 during 2013. The book values of Barringers asset and liability accounts are considered as equal to fair values except for a copyright whose value accounted for Andersons excess cost in each purchase. The copyright had a remaining life of 16 years at January 1, 2013. | Barringer reported $244,500 of net income during 2014 and $291,500 in 2015. Dividends of $79,000 are declared and paid in each of these years. Anderson uses the equity method. | a. | On its 2015 comparative income statements, how much income would Anderson report for 2013 and 2014? | Equity income 2013 ___________________ Equity income 2014____________________ b. | If Anderson sells its entire investment in Barringer on January 1, 2016, for $509,320 cash, what is the impact on Andersons income? | Gain/Loss on sale of investment = ___________________ Assume that Anderson sells inventory to Barringer during 2014 and 2015 as follows: | Year | Cost to Anderson | Price to Barringer | Year-End Balance (at Transfer Price) | 2014 | $46,200 | $66,000 | $26,400 (sold in following year) | 2015 | 41,800 | 76,000 | 52,800 (sold in following year) | | c. | What amount of equity income should Anderson recognize for the year 2015? | Equity Income ____________________ |