Gargiulo Company, a 90% owned subsidiary of Posito Corporation, sells inventory to Posito at a 25% profit on selling price. The following data are available pertaining to intra-entity purchases. Gargiulo was acquired on January 1, 2012. 2012 2013 2014 Purchases by Posito $8,000 $12,000 $15,000 Ending inventory on Posito's books 1,200 4,000 3,000 Assume the equity method is used. The following data are available pertaining to Gargiulo's income and dividends. 2012 2013 2014 Gargiulo's net income $70,000 $85,000 $94,000 Dividends paid by Gargiulo 10,000 10,000 15,000 3. Compute the non-controlling interest in Gargiulo's net income for 2012. A. $6,970. B. $7,000. C. $7,030. D. $6,270. E. $6,230. 4. For consolidation purposes, what amount would be debited to cost of goods sold for the 2014 consolidation worksheet with regard to the unrealized gross profit of the 2014 intra-entity transfer of merchandise? A. $600. B. $750. C. $3,760. D. $3,000. E. $675. 5. Assuming all the above remain unchanged except 25% is percentage of markup on cost, compute the equity in earnings of Gargiulo reported on Posito's books for 2012. A. $63,000. B. $62,760. C. $69,760. D. $70,000. E. $62,784