HARRY has a 30% interest in POTTER, a joint venture. POTTER sold $100,000 in merchandise to HARRY during the year at its normal gross margin of 40%. By the end of the year, HARRY had sold 80% of this merchandise to an external customer. What adjustment should HARRY make to equity income from POTTER as a result of the unrealized profit in ending inventory? Sure Co. issued preferred shares on January 1, 2020. The preferred shares pay a dividend of $5 per share. The holders of these shares have a right to require Sure to redeem the shares at $100 per share on or before January 1, 2030. How is the dividend reflected in Sure's financial statements?