On January 1, Year 1, Lake Inc, a 60% owned subsidiary of Ocean Co, sold equipment to Ocean. Assume that this intra-entity saie of asset resulted in a gain of $51,000 and annual excess depreciation expense of $3,400 per year. Further assume that the total annual excess amortization resulting from the acquisition was 5,200. Lake reparted net income of $187,000 in Yeat 1 and $234,000 in Year 2, respectively. Equity method is used. Requirement: 1. What is Ocean's share in Lake's net income for Year 1 ?. (4 points) A 2. What is Ocean's share in Lake's net income for Year 2 ? (3 points) 3. If it was Ocean who sold the equipment to Lake and other things being equal, what is Ocean's share in Lake's net income for Year 1? (4 points) On January 1, Year 1, Lake Inc, a 60% owned subsidiary of Ocean Co, sold equipment to Ocean. Assume that this intra-entity saie of asset resulted in a gain of $51,000 and annual excess depreciation expense of $3,400 per year. Further assume that the total annual excess amortization resulting from the acquisition was 5,200. Lake reparted net income of $187,000 in Yeat 1 and $234,000 in Year 2, respectively. Equity method is used. Requirement: 1. What is Ocean's share in Lake's net income for Year 1 ?. (4 points) A 2. What is Ocean's share in Lake's net income for Year 2 ? (3 points) 3. If it was Ocean who sold the equipment to Lake and other things being equal, what is Ocean's share in Lake's net income for Year 1? (4 points)