On January 4, 2021, Universal Comp. paid \$324 million for 10 million shares of United Company common stock. The investment represents a 30% interest in the net assets of United. Universal received dividends from United of $2.0 per share on December 15, 2021, and United reported net income of $160 million for the year ended December 31, 2021. The market value of United's common stock on December 31,2021 , was $31 per share. On the purchase date, the book value of United's net assets was $800 million and: a) The fair value of United's depreciable assets, with an average remaining useful life of six years, exceeded their book value by $80 million. b) The remainder of the excess of the cost of the investment over the book value of net assets purchased was attributable to goodwill. During 2021, Universal sold inventories to United realizing a gross profit of $10 million on the sale. At the end of the year, 60% of these inventories remain unsold on United's balance sheet. Required: 1) Assume that the 30% interest in United gave Universal the ability to exercise significant influence over United's operations. Prepare the necessary journal entries assuming that Universal accounts for this investment using the equity method. 2) Assume the inventories are all sold in the following year, and that United reports $200 million of net income. How much equity income will Universal report for the following year, i.e., 2022