Problem 1-11 (Algo) (LO 1-7) Jubilee, Inc., owns 30 percent of JPW Company and applies the equity method. During the current year, Jubilee buys Inventory costing $92,400 and then sells it to JPW for $154,000. At the end of the year, JPW still holds only $29,800 of merchandise. What amount of gross profit must Jubilee defer In reporting this Investment using the equity method? Multiple Choice $7,776 $3,576. $11,376. $14,076