Jubilee, Inc., owns 30 percent of JPW Company and applies the equity method. During the current year, Jubilee buys inventory costing $75,600 and then sells it to JPW for $126,000. At the end of the year, JPW still holds only $27,900 of merchandise. What amount of gross profit must Jubilee defer in reporting this investment using the equity method? Multiple Choice $3,348. $10,848. $6,048. $13,548