Panner, Inc., owns 20 percent of Watkins and applies the equity method. During the current year, Panner buys inventory costing $116,350 and then sells it to Watkins for $179,000. At the end of the year, Watkins still holds only $24,700 of merchandise. What amount of gross profit must Panner defer in reporting this investment using the equity method? Multiple Choice O $8,629 $6,229. O O $10,429. O $1,729. Alex, Inc., buys 30 percent of Steinbart Company on January 1, 2017, for $460,000. The equity method of accounting is to be used. Steinbart's net assets on that date were $1.30 million. Any excess of cost over book value is attributable to a trade name with a 20-year remaining life. Steinbart immediately begins supplying inventory to Alex as follows: Year 2017 2018 Cost to Steinbart $73,440 105,600 Transfer Price $102,000 165,000 Amount Held by Alex at Year-End (at Transfer Price) $25,500 50,000 Inventory held at the end of one year by Alex is sold at the beginning of the next. Steinbart reports net income of $90,750 in 2017 and $122,550 in 2018 and declares $20,000 in dividends each year. What is the equity income in Steinbart to be reported by Alex in 2018? Multiple Choice $46,207 O $40.207. O $25,337 O $30,007