Please solve using equity accounting following GAAP? Please show your work. You may need to enlarge your browser's view (i.e., zoom in) to read the smaller print.

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Acker Inc. bought 40% of Howell Co. on January 1, 2012 for $576,000. The equity method of accounting was used. The book value and fair value of the net assets of Howell on that date were $1.440,000. Acker began supplying inventory to Howell as follows: Cost to Acker $55,000 $70,000 Transfer Price $ 75,000 $110,000 Amount Held by Year 2012 2013 Howell at Year-End $15,000 $55,000 Howell reported net income of $100,000 in 2012 and $120,000 in 2013 while paying $40,000 in dividends each year. What is the Equity in Howell Income that should be reported by Acker in 2012? Fair value of assets Percentage purchased Fair value of amount purchased Price paid Excess of Price Paid over FV 2012 Gross Profit on inter-entity sales 40% of it that must be eliminated (if all was sold) Add back that portion that was realized when sold to outside parties Deferred profits in inventory at 2012 Equity Income in Howell for 2012