MikeCo,Inc. holds 24 percent of the outstanding shares of Mark company and appropriately applies the equity method of accounting. Excess cost amortization (related to a patent) associated with this investment amounts to $11,000 per year. For 2017, Mark reported earnings of $116,000 and declares cash dividends of $31,000. During that year, Mark acquired inventory for $52,000, which it then sold to MikeCo for $86,000. At the end of 2017, MikeCo continued to hold merchandise with a transfer price of $30,000.

1. What Equity in Investee Income should MikeCo report for 2017?
2. How will the intra-entity transfer affect MikeCo's reporting in 2018?
3. If MikeCo had sold the inventory to Mark, how would the answers to (a) and (b) have changed?