Panner, Inc., owns 30 percent of Watkins and applies the equity method. During the current year, Panner buys inventory costing $93,100 and then sells it to Watkins for $133,000. At the end of the year, Watkins still holds only $21,400 of merchandise. What amount of gross profit must Panner defer in reporting this investment using the equity method? Multiple Choice o $10,026. $1,926. O $4,926. o $12,726