Jjasper inc. holds 30% of the outstanding voting shares of kinson co, and appropriately aplies the equitymethod of accounting. Amortization associated with this investment equals $11,000 per year . For 20x1, Kinson reported earnings of 100,000 and paid cash divideds of $40,000. Furing 20x1, Kinson acquired inventory for $62,400, which was then sold to Jasper for $96,000. At the end of 20x1, Jasper still held some inventory at its transfer price of $50,000.

1). Determine the amount of intra- entity profit at the end 20x1.

2). Determine the amount of equity in investee income that jasper shuld have reported for 20x1.