Chapter 1 question 6

6 Tiberend, Inc., sold $136,000 in inventory to Schilling Company during 2017 for $200,000. Schilling resold $117,000 of this merchandise in 2017 with the remainder to be disposed of during 2018. Assuming that Tiberend owns 35 percent of Schilling and applies the equity method, what journal entry is recorded at the end of 2017 to defer the intra-entity 10 gross profit? (If no entry is required for a transaction/event, select "No journal entry required" in the first account points field. Do not round intermediate calculations.) x Answer is complete but not entirely correct. No Transaction General Journal Debit Credit 1 Equity income from Schilling 13,000 X Investment in Schilling 14,000 X