• Bruce Company owns 30% of the outstanding voting common stock of Dave Corp. and has the ability to significantly influence the investee's operations.
• In 2020, Dave had sold inventory costing $37,000 to Bruce for $49,000. All but 20% of that inventory had been sold to outsiders by Bruce during 2020; the remainder was sold in 2021.
• On January 5, 2021, the balance in the Investment in Dave account was $510,000. Amortization associated with this acquisition is $15,000 per year.
• During 2021, Dave's net income of $130,000 and paid cash dividends of $19,000.
• Additional sales were made to Lee in 2021 at an intra-entity selling price of $83,000. The goods in the intra-entity sales cost Navarro $58,000. Only 15% of the 2021 intra-entity purchases from Dave had not been sold to outsiders by the end of 2021.

a) What amount of gross profit on 2020 intra-entity sales should Bruce defer at December 31, 2020?

b) What amount of gross profit on 2021 intra-entity sales should Bruce defer at December 31, 2021?

c) What amount of equity income would Lee have recognized in 2021 from its ownership interest in Dave?

d) What was the balance in theInvestment in Dave Corp. account at December 31, 2021?