Belden, Inc. acquires 30 percent of the outstanding voting shares of Sheffield, Inc. on January 1, 2017, for $312,000, which gives Belden the ability to significantly influence Sheffield. Sheffield has a net book value of $800,000 at January 1, 2017. Sheffields asset and liability accounts showed carrying amounts considered equal to fair values except for a copyright whose value accounted for Beldens excess cost over book value in its 30 percent purchase. The copyright had a remaining life of 16 years at January 1, 2017. No goodwill resulted from Beldens share purchase. Sheffield reported net income of $180,000 in 2017 and $230,000 of net income during 2018. Dividends of $70,000 and $80,000 are declared and paid in 2017 and 2018, respectively. Belden uses the equity method. On its 2018 comparative income statements, how much income would Belden report for 2017 and 2018 in connection with the companys investment in Sheffield? If Belden sells its entire investment in Sheffield on January 1, 2019, for $400,000 cash, what is the impact on Beldens income? Assume that Belden sells inventory to Sheffield during 2017 and 2018 as follows:

Year Cost to Belden Price to Sheffield Year-End Balance (at transfer price) $20,000 (sold in following year) 40,000 (sold In following year) 2017 2018 $30,000 33,000 $50,000 60,000 What amount of equity income should Belden recognize for the year 2018? Parta. Equity income-2017 Basic equity (income) accrual Amortization Equity income-2017 Equity income-2018 Basic equity (income) accrual Amortization Equity income-2018 Acquisition price 2017 equity income 2017 dividends received 2018 equity income 2018 dividends received Investment in Sheffield-12/31/18 Gain on sale of investment in Sheffield Sales price (given) Book value 1/1/19 (above) Gain on sale of investment Year Cost to Belden Price to Sheffield Year-End Balance (at transfer price) $20,000 (sold in following year) 40,000 (sold In following year) 2017 2018 $30,000 33,000 $50,000 60,000 What amount of equity income should Belden recognize for the year 2018? Parta. Equity income-2017 Basic equity (income) accrual Amortization Equity income-2017 Equity income-2018 Basic equity (income) accrual Amortization Equity income-2018 Acquisition price 2017 equity income 2017 dividends received 2018 equity income 2018 dividends received Investment in Sheffield-12/31/18 Gain on sale of investment in Sheffield Sales price (given) Book value 1/1/19 (above) Gain on sale of investment